c Pannlng, and Renearch

WORKING PAPERS

Education and Employment

Population aEnd Human ResourcesDepartment

The World BankJuly 1988WPS 24

VWorld Bank Investmentin Vocational Educatiorn

and TrainingJohn Middleton

andTerri Demsky

The challenge facing future World Bank investment in voca-tional education and training is to bring past successes in middle-income countries to the lower income countries. Strategiesnaturally will have to vary greatly from country to country.

The Policy. Planning, and Research Catplex distnhutes PPR Working Papers to dissemin the findings of work in progrss and toencouxage the exchange of ideas among Bank staff and all others interested in developmnent issues. These paperS carry the names ofthe authors, rflect only their views, and should be used and cited accordingly. Tbe findings. intAepretions, and conclusions are theauthors'own. They should not beattributed to theWorld Bank, its Board of Dixcrors, itsmamgement, or any of its nember countries.

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Polkyanning, and Reseach |

Educotlon and Employment|

World Bank investment in vocational education and dynamism of industrial employment have aand training (VETI) has averaged $500 milion a powerful influence on the outcome of invest-year in the 1980s. Since 1980 there has been a ments in vocational education and training.significant shift away from investments in Therefore, future investment strategies shouldsecondary diversified vocational schools to differ substantially among countries at differentnonformal training centers and university levels of industrialization.programs. Investments in industrial traininghave increased while those in agricultural In middle-income countries where nationaleducation have been reduced. This change training systems already exist, VET investmentsreflects lessons about the effectiveness of should emphasize rehabilitation, quality im-different types of training. provement, and further development of institu-

tional efficiency.In the past ten years the most striking

achievement of VET has been the development Some of the lower-middle-income (andof national training systems from nonformal larger low-income) countries are in the earlytraining centers and postsecondary technical stages of developing national training systemseducation institutions. This has happened and can benefiL from the experiences of the morelargely in middle-income countries, where advanced countries. VET investments in thoseproject investments have emphasized expansion countries should support institutional develop-of institutions and the link between training and ment and policy issues, including separation ofemployment. In middle-income countries all vocational training from other education andtypes of training - secondary, nonfonmal, post- development of altematives to direct govem-secondary, and VET teacher training - have ment financing.been successfully established.

In small low-income countries, recent BankInvestments in low-income countries, experience suggests that resources be concen-

especially those in Sub-Saharan Africa, have trated in nonformal training centers, trainingbeen less successful. Implementation weak- quality, development of management capacity innesses and stagnating economies have made it training institutions, and aggressive marketing ofdifficult to set up any type of training. Efforts training opportunities and services.are hampered by inefficiency and poor partici-pation. Investment in national training programs This paper is a product of the Education andhas just begun in these poorer countries, and Employment Division, Population and Humansuccess is uncertain because of continuing Resources Department. Copies are available freeeconomic constraints. from the World Bank, 1818 H Street NW,

Washington DC 20433. Please contact WorkieThese patterns suggest that the level of Ketema, room S-6228, extension 33651.

economic development and the consequent size

The PPR Working Paper Series disseminates the findings of work under way in the Bank's Policy, Planning, and ResearchComplex. An objective of the series is to get these findings out quic'ly, even if presentations are less than fuilly polished.The findings, interpretations, and conclusions in these papers do not necessarily represent official policy of the Bank.

Copyright © 1988 by the International Bank for Reconstruction and Developnei.?The World Bank

Review of the World Bank Investments inVocational Education and Training for Industry

TABLE OF CONTENTSPAGE

Executive Summary i-vii

I. Introduction 1

Scope and Limitations of the Review 2Definitions and Concepts 3Methodology and Data 9

II. Characteristics of the Investments 11

Projects 11Components and Institutions 15Summary 24

III. Investment Design 25

Justification and Planning 25Strategies 29Summary 48

IV The Development of National Training Systems 51

Investments in Institutional Capacity 51Summary 62

V. Performance 65

Economic Outcomes 65Implementation Outcomes 67Factors in Successful Systems Evolution 70Summary 79

VI. Lessons for Future Investment 81

Introduction 81The Economic Context of VET Investmenta 82The Effectiveness of Alternative Training Modes 83Implications for Investment Design 86Summary: Implications for the World Bank 100

Bibliography

AnnexesI - MethodologyII - Summary of Projects and Components in the SampleIII - Sector Work AnalysisIV - Pattern of Investment in Institution Building

FIGURESPAGE

Figure 1t Taxonomy of Vocational Education 5and Training

Figure 2: Conceptual Model of Skill Development 8and Employment

TABLES

Table 1: Sample Project and Component Cost 12and Size, InLome Level, All Projects

Table 2: Sample Project and Component Cost and Size, 12By Region,. All Projects

Table 3: Project Size, Cost and Performance, By 13Income Level, Completed Projects

Table 4: Project Size, Cost and Performance, 14By Region, Completed Projects

Table 5: Average Size of Institutions Supported, 16By Mode and Region

Table 6: Average Size of Institutions Supported, 17By Mode and Income Level

Table 7: Average Planned Total Investment Cost 19Per Place By Mode and Region

Table 8: Average Planned Total Investment Cost 19Per Place, By Mode and Income Level

Table 9: Average Institut'onal Size and Unit Tctal 20Investment Costs Per Place, By Mode,Region and Income Level

Table 10: Categories of Expenditure, By Mode, Region 22and Income Level, Completed Components

Table 11: Changes in Allocations by Category of 23Expenditure, Two Time Periods,By Region

Table 12: Relationship of Sector Work to Subsequent 28Investments

Table 13: Percentage Distribution of Component 31Objectives By Region, Mode and CountryIncome Level

Table 14: Changes in Percentage Distribution of 33of Client Objectives, Three Time Periods:Summary Data

Table 15: Pere~entage Distribution of Client 34Objectives, Three Time Periods:By Region

Table 16: Percentage Distribution of Client 35Objectives, Three Time Periods:By Mode

Table 17: Incidence of Linkages, By Mode 36Sample of Completed IndustryVET Components

Table 18: Incidence of Articulation Arrangements, By 37Country Level: Sample of CompletedIndustry VET Component

Table 19: Percentage of Linked Components With A 38Given Linkage Type, By Mode: Sample ofCompleted VET Industry Components

Table 20: Incidence of Provision of Training Services 39to Enterprises, By Region andTime Period

Table 21: Support for Testing and Certification 42System, Sample Countries,By Income Level

Table 22: Factors in Instructional Staff Development, 44By Country

Table 23: Project Investment Emphasis on Developing 51Institutional Planning, Management andCurriculum Development Capacity.

Table 24: The Development of National Training Systems 53Table 25: Component Management Effectiveness 59

and Adequacy of Financing, By Region,Income Level and Mode

Table 26: Unit Recurrent Costs 66Table 27: Evidence on Outcomes, By Region, 67

Completed ProjectsTable 28: Proportions of Enrollment Targets Achiev.' 68

at Completion By Mode and Income Le,Completed Industry VET Projects

Table 29: Average Component Performance, By Mode w.,! 69and Income Level, Completed Projects

Table 30: Average Component Performance, By Mode and 70Region, Completed Projects

EXECUTIVE SUMMARY

i. The nature of World Bank-assisted investment in vocationaleducation and training (VET) for industrial employment has evolvedsubstantially over the past twenty-three *ears. The share of educationsector lending for VET has declined as investment in primary educationhas increased. Absolute investment reached a peak of $845 million inFY80, and has fluctuated annually since then around an average of $500million. Within VET, there has been a significant shift away frominvestments in secondary diversified and vocational schools towardsnonformal training centers and university-level programs. Investmentsin VET for industry have increased, while those for agriculturaleducation and training have decreased substantially. These shiftsreflect lessons learned through experience about the relativeeffectiveness of different modes of training.

ii. Most striking has been the development in the last decade ofnational training systems built around nonformal training centers andpost-secondary technical education institutions, primarily in middleincome countries. These have been developed through sequences ofproject investmer.ts that emphasized the development of institutionalcapacity and linkages between training and employmena. The systems, andthe project components that supported them, have performed well onimplementation criteria, and the evidence suggests a reasonable levelof training effectiveness as well. It has been possible to establishall modes of training -- secondary, nonformal, post-secondary, and VETteacher training -- in middle income countries.

iii. Iv contrast, investments and institutions in low incomecountries, . pecially those in Sub-Saharan Africa, have beencomparatively less successful. Implementation weaknesses andstagnating economies have made it difficult to establish any mode oftraining, and the evidence suggests low utilization and efficiency.Investment in the development of national systems has only just begunin these countries, with uncertain outcomes due to continuing economicand implementation constraints.

iv. Overall, these patterns suggest that the level of economicdevelopment, and the consequent size and dynamism of industrialemployment, exerts powerful influence on the success of investments invocational education and training. Future investment strategies shouldthus differ substantially across countries at different levels ofindustrialization.

v. In middle income countries, investments in existing nationalsystems are likely to emphasize rehabilitation, quality improvement,and continued institutional development towards improved efficiency.In some cases building the capacity of national systems to assume newroles in technology adaptation and productivity improvement will beimportant.

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vi. A number of lower-middle income (and some larger low-income)countries are at an earlier stage of systems development. Theexperiences of more advanced countries will be useful tocontinuing investments; these will include support for policy andinstitutional development. Key policy issues will be clear structuralseparation of training from general education and the development ofalternatives to diLect government financing.

vii. In small low income countries, recent Bank investmentexperience suggests strategies that concentrate resources, and thatemphasize nonformal training centers, training quality, development ofmanagement capacity both in training institutions and in enterprises,and aggressive marketing of training opportunities and services.Regional professional support institutions merit consideration.

viii. For investments supported by the World Bank, at least, thevocational secondary school has become a less attractive mode oftraining. Vocational secondary schools can be effective in middleincome countries when they acquire the characteristics of effectivenonformal centers -- strong linkages with enterprises, and the abilityto respond klexibly to changing labor markets and to offer salaries andincentives sufficient to attract and retain qualified instructors. Inlow income countries, weak implementation capacity and the nascentstage of enterprise development, coupled with the curriculum andstaffing rigidities and recurrent cost constraints characteristic ofMinistry of Education operations, have made it difficult to adapt thesecondary model effectively in these directions.

ix. At the same time, strong secondary education is important totrainability, either after employment in enterprispi or before innonformal centers. In this context, the decline of Bank investment ingeneral secondary education over the past decade needs re-examination.A new concept of secondary education in the low income countries isneeded.

x. Thus the Bank faces both an opportunity and a challenge inprQviding support for vocational education and training over thebalance of the century. The opportunity is to capitalize on -- and toextend -- ;he generally successful pattern of training systemsdevelopment in middle income countries. The challenge is posed by theproblems of developing cost-effective training systems in smalllow-income countries, notably in Sub-Saharan Africa. Successfulinvestment will require a very high level of policy and institutionaldevelopment content; of special importance will be continueddevelopment of alternative financing arrangemenus.

xi. These conclusions emerge from an analysis of World Bankinvestments in vocationally-specific education and training for indus-trial employment in the period FY63-86. The revieL is based on a

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a sample of 121 of the 213 industry VET components in the 320 educationsector projects financed in the period FY63-86. The sample was drawnto be representative across training modes, regions, and country incomelevels. It emphasizes more recent investments and countties where asequence of project investments has been made. The sample represents60% of the total project costs of the universe.

xii. The analysis addresses f-u- questions. What are thecharacteristics of investments in - in terms of size and type ofinvestment, costs and overall inpl ~ntation performance? What werethe elements of investment design? ;hat strategies have bee-, employedin developing national training systems? What was the record ofperformance of components and institutinns; what factors contributed toor inhibited success? The main findings under each question aresummarized be'ow.

MAIN FINDINGS

Characteristics of the Investments

xiii. The size of the projects financed, and of of the VETcomponents within them, varied directly with the income level of thecountry. The smallest projects and components were in Africa, thelatter averaging about US $7 million; the largest projects were inAsia. VET components in Asia, LAC and EMENA were similar in size,averaging about four times the cost of components in Africa.

xiv. Project performance, as measured by time overruns andinstitutional performance, varied relatively little, and then more byregion than by country income level. By region, the best performancewas achieved in Asia and EMENA, followed by LAC. Overall, there was aslight project cost underrun. On completion delays these investmentsperformed as well as primary education projects financed during theperiod (average 31 months); on institutional performance they comparefavorably to all education sector projects completed in FY84 and FY85.

xv. The institutions supported were smallest in terms of placesin EMENA and in low income countries. Total investment costs perplace created were significantly higher in Africa and in low incomecountries. These costs vary considerably across modes, income levelsand regions; the data indicate, however, that the investments costsassociated with producing a skilled worker are roughly equivalent forsecondary and nonformal institutions. Teacher training places havebeen most costly overall. Cost differences can be explained byeconomies of scale only for secondary institutions across incomelevels.

xvi. These investments have provided increasing support over timefor furniture and equipment, and for technical assistance, consistentwith later emphasis on rehabilitation and institutional development.

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Investment Design

xvii. The economic justifications of the sample components rarelyaddressed short and medium-terv labor market demand factors, relyinginstead on general manpower requirements forecasts based on assumptionsregarding economic growth. Where such growth did not materialize (aswas tha case in most low income countries), these forecasts have beengenerally inaccurate. Most were done by Bank staff or UNESCOconsultants. It is reasonable to assume, given a parallel lack ofattention to shorter-term planning, that manpower forecasting divertedattention from the establishment of more flexible and responsiveplanning mechanisms. Labor market factors have received more attentionin later investments in middle income countries, most of which havesapported the development of national systems based on nonformaltraining centers.

xviii. Relatively little has been done in these components toaddress training opportunities for women, although a general thread ofconcern for better access of disadvantaged groups runs through most ofthe investments. Improving the income of disadvantaged groups requiresmore than trnining. Attention to employment codes and practices, andmanagement attitudes and nacity, is also needed. There is noevidence that these issues were addressed in the components sampled.

xix. Sector analysis has been important, generally leading tosignificant investments in institutional development. Sector work inAfrica is beginning to contribute to policy and institutionaldevelopment, although the frequency and policy relevance of sectoranalysis in the region have lagged behind that in other regions.

Development of National Training Systems

xx. A clear pattern of success emerges from the analysis ofinvestment strategies. Increasing emphasis in middle income countrieshas been given to the creation of national training systems. These arelargely based on nonformal modes, are well linked with employers,generally seek to develop alternative financing schemes, andincorporate professional support institutions that establish thepermanent capacity for curriculum development and teacher training.Testing and certification systems provide feedback to system managersand to employers on performance. Curriculum development is often basedon occupational analysis, providing another practical link betweentraining and employment. These systems also incorporate post-secondarytechnical education and training institutions.

xxi. Management of the nonformal system is most often based inautonomous or quasi-autonomous training agencies, or in units of theMinistry of Labor. There is a clear administrative separation ofvocational training and technician education at the post-secondary

level, with the latter managed by Ministries of Education. Many of thenational training systems employ a significant degree ofdecentralization in order to strengthen training center responsivenessto local industry needs. Decentralization strategies, however, haveencountered implementation difficulties where adequate preparation ofdecentralized units has not been undertaken.

xxii. Such systems may be under development in current projects ina limited number of countries in Sub-Saharan Africa. However, most ofthe early investments in these countries have been small projectssupporting a few vocational schools; in later years these havesupported nonformal training centers. Sustained investment in systemsdevelopment has so far been comparatively rare.

Performance

xxiii. Data on economic outcomes of training are absent from projectevaluations. Reliable unit recurrent cost data is almost entirelylacking, although the data that are available confirm that secondaryvocational schools are more expensive than general secondary schools.Thus assessment of investment performance is largely limited tocriteria of implementation success.

xxiv. The exception is found for the investments in Asia. Thereinformation on graduation rates, placement rates and employersatisfaction was available for a sufficient proportion of thecomponents to justify inferences. On all three criteria, theinstitutions supported in these components performed very well. Theseincluded all modes of training.

-xv. On the criterion of proportion of enrollment targets achievedat completion, performance varied directly with the income level of thecountry. About 40% of targets were achieved in low income countries;90% in lower-middle income countries, and 109% in upper-middle incomecountries. Overall, there was little varlition across modes. However,secondary vocational schools performed best overall, and slightlybetter across income levels than the more complex nonformalinstitutions. The data indicate that it is difficult to establish anyinstitutional mode in low income countries (including secondaryvocational schools), with weak implementation capacity and financialconstraints. The opposite is true for middle income countries.

xxvi. This criterion, of course, does not capture the eventualenrollment performance of project institutions, many which sufferedfrom significant delays in completion. But it can be taken as anindicator of the difficulties encountered in establishing a given modeof training.

xxvii. These findings are mirrored in ratings of institutionalperformance of VET components. On a regional basis, components inAfrica performed at a significantly lower level than those in the otherthree regions.

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xxviii. Secondary vocational schools have performed well onimplementation criteria In part due to the relative simplicity andfamiliarity of institutional debLgn. In low income countries, end inAfrica, while these have performed better than more complex andless familiar nonformal institutions, the absolute level of performancehas been very low. These institutions have also encounteredsignificant problems in effectiveness. Many appear underutilized.They have had much less success in establishing linkages withemployment than nonformal and post-secondary institutions. Ministry ofEducation teacher salary scales have made it difficult to pay wagesadequate to attract qualified staff, contributing in many Africancountries to continuing reliance on expatriate teachers.

xxix. Preference for nonformal training centers under thesecircumstances rests on successful experience in middle incomecoG:ntries, and on the greater inherent potential for flexibilityeffi lency that nonformal training provides. Whether indeed thispotential can be realized in low income settings remains an openquestion.

xxx. Successful investment programs in middle income countries hadin common nine characteristics:

a. Long Time Perspective With Multiple Investments

b. Expanding Industrial Employment

c. Small Beginnings in Formal Institutions, and IncrementalExpansion

d. Planning That Responded to Labor Market Demand

e. Early and Sustained Involvement of Enterprises

f. Evolution of Policy and Management Capacity to MatchSystem Complexity

g. Increasing Attention to Alternatives to Direct GovernmentFinancing

h. Investments in Training Quality: Permanent Curriculumand Staff Training Capacity, Testing, AttractiveSalaries for Staff; Incentives to Attract Good Students

i. Flexibility of Curri.lum and Institutional Design

xxxi. Less successful investments were weak on most, if not all ofthese characteristics.

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xxxii. There are indications that some of these lessons are beingapplied in cArrent investments in low income countries in Sub-SaharanAfrica. Institutional capacity is being strengthened in five countries;in seven others support is being given to developing nonformal trainingcenters. Since FY80 only one investment in Sub-Saharan Africa hassupported a vocational secondary school.

I. Introduction

1.01 Investment in vocational education and training (VET) hasbeen the cornerstone of Worll Bank education sector lending since thefirst education loan in FY63. The investments have supported a rangeof institutions! arrangements for the delivery of training at skilledwtrker, technician and professional/managerial levels, includingsecondary vocational schools, center-based nonformal training andapprenticeship, polytechnics and occupationally-specific universitydepartments and programs, and teacher training for both VET and generaleducation. Also included have been "diversified" secondary schoolsthat add some vocational content to general education. The investmentshave provided training in support of employment in industry,agriculture and commerce/services.

1.02 More than half of the total cost of projects supported byWorld Bank education sector lending in the period FY63-86 was devotedto VET. In the period FY63-7f investments in all forms of VETrepresented 62% of total proj costs. Annual lending volume for VETgrew trom $6.6 million in FY63 co $160 million in FY 76, with anaverage annual value of $150 million. As lending for primary educationexpanded from the late 1970s onward, the share of World Bank educationsector lending devoted to VET declined proportionally to 51% . However,absolute lending volume increased, reaching a peak of $845 million in1980, and fluctuating thereafter around an average of $500 million peryear. 1/

1.03 The shape of this investment program has changedsubstantially over the past twenty-five years. Lending increased forindustry VET, and decreased for agriculture. Within industry VET,investments in center-based nonformal training administered outsideministries of education and in university-level prcgrams has increasedrelative to other modes. Investment in diversified secondary schoolshas declined sharply.

1.04 In recent years increasingly constrained education budgets,the comparatively high costs of VET and concerns regarding the externalefficiency of some VET institutions have raised questions as to thecost-effectiveness of alternative investments in training. A number of

1/ A comprehensive analysis of patterns of World Bank investments inVET may be found in Antoina Schwartz. Profile of World Bank FinancedInvestments in Vocational Education and Training. Population and HumanResources Department, World Bank (1988, forthcoming).

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international agencies, including the World Bank, CIDA and the GTZ(Germany) are carrying out broadly-based policy analyses and reviews.This study of World Bank experience wit ¶ investments in training forindustrial employment has been undertaken as part of the Bank's broaderpolicy analysis.

SCOPE AND LIMITATIONS OF THE REVIEW

1.05 The purpose of this review is to identify lessons fromBank experience with investments in vocational education and training(VET) to inform future investment. The study is limited to trainingfor modern sector industrial employment, and further to four trainingmodes: secondary, post-secondary, nonformal and vocational teachertraining. Not included are university-level VET investments,diversified secondary schools and general teacher training. 1/

1.06 Like all operational reviews, the study is concerned both withinvestment projects and the institutions that these support. There arefive principal questions, each treated in a separate section of thereview:

(a) What are the characteristics of these investments interms of size and type of investment, costs and overallimplementation performance?

(b) What were the elements of investment design? How werethese investments justified and planned?

(c) To what extent have effective training systems beendeveloped? What investment strategies were employed?

(d) What was the record of performance of project componentsand institutions, in implementation and in terms ofeducational outcomes? What factors contributed to orinhibited success?

(e) What lessons can be drawn for future VET investment?

1/ Training for employment in agriculture, and in services/commerce, isbeing analyzed in separate reviews. University-level investments willalso be treated separately; teacher training and diversified secondaryschools have been analyzed previously (see Haddad, 1985; Haddadand Conly, 1987; Psacharopoulos and Loxley, 1985).

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1.07 The scope of the review and the answers to these questionsare necessarily limited to the experience of the Bank and its Borrowerswith training for modern industrial sector employment, and with thefour modes of training aelected. While the Bank has been the singlelargest investor in education in developing countries, 1/ itsexperience is not necessarily representative of all VET investment.

1.08 The review does not address the substantial investments madeby the Bank in project related training, or in education components inprojects in other sectors, with the exception of a limited number of"free standing training projects." 2/

1.09 However, the review does cover the employment sector --industry -- receiving greatest emphasis in training •nvestment (80% oftotal VET investment in FY77-86). The four modes studied accounted forsomewhat more than half of this investment (with the balance cominglargely in university-level projects).

1.10 Finally, the retrospective nature of the review focusesattention on what has been done in the past, and to a lesser extent onthe nature of current investments. There are significant issues in VET-- for example, the contribution of training to informal sectoremployment -- that fall largely outside of World Bank experience,however important they might be for the future.

DEFINITIONS AND CONCEPTS

1.11 The field of vocational education and training is beset bydefinitional problems. In his review of the literature on thecost-effectiveness of training, Dougherty notes that "... much of thecontroversy in the literature appears to be attributable to antagonistsunwittingly focussing on two different points in what is in effect acontinuous spectrum and then arguing at cross purposes.u(1988, forthcoming).

1/ The Bank provided 14-20% of external aid to education annuallybetween 1980 and 1986. See Program for Accelerated EducationalDevelopment. Population and Human Resources Department, World Bank.April, 1988.

2/ PRT investments have been recently analyzed in:

Annual Operational Review FY87: Education and Training. Populationand Human Resources Department, World Bank, March, 1988.

H.W. Barker. General Operational Review of the Treatment ofManpower and Training Issues in Sector Work. Population andHuman Resources Department, World Bank (1988 forthcoming).

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1.12 Clarity is needed alonig two dimensions. One is essentiallystatic. This is the definition of what is being studied, requiring theutilization of a taxonomy that makes it possible to distinguish amongthe various purposes and institutional arrangements that characterizethe "continuous spectrum" of training provision. The second isdynamic. A conceptual model is needed in order to identify, a priori,the basic elements of training systems that, taken together, determinecost-effectiveness. These elements, in turn, can serve as the commontemplate for the evaluation of varying kinds of training investments.

A Taxonomy of Training

1.13 A fundamental premise of this review is that the nature andeffectiveness of various training systems depends on the degree towhich they fit the needs of economies at different levels ofdevelopment. Training systems in low income countries will addressdifferent training needs, and encounter differing institutionalconstraints, than those in middle income or developed countries. Thusan important dimension of any taxonomy will be some proxy measure forthe level of economic development.

1.14 A second key dimension is the sector of employment. Labormarket demand, and skill needs, differ across the sectors. Moreover,training systems are often organized and administered separately,especially those for agriculture.

1.15 The mode of training is an important third dimension.Training is organized in a great many ways, and as noted earlier, thereis considerable uncertainty as to how these modes should becategorized. Under any svstem, a given label -- such as "vocationalsecondary school" -- will mask considerable variety in the way in whichtraining is organized and delivered. Nevertheless, some categorizationis needed, especially one which identifies modes with the skill levelfor which training is provided. Here again we encounter a continuumrather than clearly distinguishable categories, but it is reasonable touse the three levels most commonly referred to in both the literatureand investment documents: craft or skilled worker; technician; andprofessional.

1.16 A matrix taxonomy of VET using these three dimensions ispresented in Figure 1. Country income level, as reported in the Worlddevelopment report, is used as a proxy for level of economicdevelopment. The three principal sectors of employment form the seconddimension.

1.17 Seven institutional modes for vocationally-specific educationand training are identified: university, teacher training for generaleducation, diversified secondary, post-secondary, secondary andnonformal. Taken together, these modes define the universe of types ofvocational education and training in which the World Bank has invested.The scope of the present review is indicated in the matrix.

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Figure 1: Taxonomy of Vocational Education and Training

Country Income Level

Low 7-11 Lower Middle Z

er Middle

Employment Sector

.Mode Agriculture Industry Commerce/Services

University

Teacher Training(General)

Post-secondary(non-university) x

SecondaryTechnical/Vocational X

DiversifiedSecondary

Non-formal X

VET TeacherTraining X

X= Covered in this review

1.18 These modes differ in two ways. Of primary importance is thefact that they provide training for different levels in theoccupatio.-al structure. Secondly, they differ in the degree to whichthey are articulated with the formal education system, offeringdiplomas and degrees which enable completers to enter higher levels ofeducation.

1.19 University VET encompasses courses of study (such asengineering, medicine, pharmacology, and business administration) thatprepare individuals for specific occupations at a professional level.Teacher training for general education also prepares for a specificprofession.

1.20 Post-secondary institutions in this taxonomy comprise alltypes of formal education that require graduation from secondary schoolfor entrance and that prepare students for specific occupations, butwhich offer less than a university degree. Training at this level isprimarily oriented to the preparation of technicians, and requiresrelatively long (two-three year) courses, often combined with practicalwork in enterprises. In some cases completion of a post-secondaryprogram enables students to enter higher levels of universityeducation.

1.21 Secondary vocational and technical schools train skilledworkers and craftsmen through curricula in which the larger share ofstudent time is devoted to practical subjects and workshop training,with the balance being comprised of general education subjects. Inthe Bank's experience, these have gonerally been publicly financed andmanaged by Ministries of Education, although a small number ofspecialized secondary schools, such as for agriculture, have beenmanaged by other Ministries. It is generally intended that graduatesof these institutions will enter the labor market, though they oftencan and do enter higher levels of formal education. Although thedistinction is not always entirely clear, diversified secondary schools(i.e., those which seek to add practical experience to the curriculumbut which are not solely designed to provide terminal job trainingexperiences) are not included in this definition.

1.22 The term "nonformal" is used as a label for a range oftraining institutions that prepare craftsmen and skilled workers.l/The output of such institutions generally enters the labor market onterms similar to those of graduates of secondary vocational/technicalschools. "Non-formal" institutions are almost always located outsideof the formal education system, and do not provide diplomas and accessto higher levels of education. Included are centers and formalizedapprenticeship schemes managed most often by Ministries of Labor or

1/ The most unsatisfactory aspect of this label (which is widely used)is that it implies a low level of training organization. In fact,training in such institutions is highly organized, and in that respectsimilar to that in "formal" training organizations.

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public corporations with varying degrees of autonomy, as well asspecialized training institutions established within public agencies toserve particular sectors of the economy -- such as construction,transport, and agriculture.

1.23 This definitional taxonomy has been used to structure thesample of industry VET project components on which the review is based.Within the focus on employment in the industry sector, country incomelevel and training mode -- and the additional criterion of changes overtime -- provide the basis for comparative analysis of Bank VETinvestment experience.

A Dynamic Conceptual Model

1.24 A dynamic conceptual model of training systems has beendeveloped for heuristic purposes as part of the overall research planfor the lank's broad VL policy study (Middleton and Schwartz, 1986).A social 3ystems approach was taken in order to identify the keyfactors that determine both the internal and external efficiency of anytraining institution. These factors then become the basis for theidentification of variables and data needs for a range of studies,including operational reviews and field cases.

1.25 The model (Figure 2) rests on the basic premise that theinternal and external efficiency of any training system (8.0) aredetermined by the interaction of the system with employment systems(5.0). The two are dynamically connected by flows of information andresources, including a crucially important feedback component on theeffcctiveness of skills development (16.0).

1.26 The model is gencric. The nature of its components andconnecting flows, however, is likely to be very different when comparedacross distinctive political and economic systems. The model providesa structure for the analysis of VET systems, suggesting where to lookfor the key elements and potential points of policy intervention.

1.27 The model shows how the political and economic system of asociety, as shaped by external economic and social factors (1.0),functions through its policy institutions and mechanisms (7.0) toestablish basic policy and resource parameters (9.0, 10.0) for training(8.0) and employment (5.0) systems. Differences in these basicresources and policy parameters lead to differences among training andemployment systems. These are each comprised of dynamically-linkedsub-systems that define their efficiency and effectiveness. In thetraining system, for example, training is comprised of teachers,studernts, facilities and equipment linked through a curriculum andlearning activities. In the employment system, manpower is joined withother resources and technology in the production process.

|1.0 gxternal|

Social Factors on EffedvDac|Political and | /o £etvns

6.0 Teacher 7.0 Policy 170.Training r Talng Inlstitutions | Ec nomic Nonv'e

z~~~~~~ Poic * lrp andlor 0 Flicyv udlor Rsource;sourcesJ ~~~Mechanisms I\ources ;w

3.0 Labor S. - > _;_ ;-ys-eForce 8.0 Training Syseew S fitotuttne Sv men

Teachers iy n ga oLrgSantization /Fc_

Facilities _Capital__ Equipment :uIl_ insL Labor* 9

8 C J } tDd ) - ° > Cauponents~~~~~~~kiled

I - \ , J OSu Componients

Figure 2: Conceptual Modes of Skill Developmentand Employment

Source: Middieton and Schwartz (1986)

-9-

1.28 Training and employment systems are linked in several ways.For example, the product of the training system, skilled persons(12.0), is used by the employment system. Labor markets (13.0) oremployment mechanisms in the enterprise mediate this flow between thetraining and employment systems. The employment system sends demandsignals (14.0) to the labor force (3.0). The labor force also receivessupply signals (15.0) related to training places from the trainingsystem. The moel includes, in addition, institutional linkages (7.0)between the two systems. These may come in various forms ranging fromadvisory committees of employers on training curricula to formalcontracts for training services. The equilibrium of the skillsdevelopment process is maintained by the feedback mechanisms onemploywent, which are used to modify policy, and by demand and supplysignals (14.0, 15.0).

1.29 The connecting linkages between the three systems play avital role in the efficiency of skills development. The internalefficiency of VET, for example, is shaped by institutional policy andmanagement within the training system; these determine how a traininginstitution uses inputs of information and resources to produce skilledpersons. As a consequence, the effectiveness of institutional policyand management will depend in part on the nature of externallydetermined training policies and resources (9.0) furnished by thepolitical and economic system (2.0), the demand signals (14.0)received, and the institutional linkages (11.0) in place. If trainingpolicies are unclear or resources inadequate, or information flows andlinkages weak or ineffective, the internal efficiency of the trainingsystem will be threatened.

1.30 By the same token, the external efficiency of VET will beinfluenced by management in the employment system and its determinationof how enterprises will use skilled labor and other resources alongwith technology in the production process. The effectiveness ofmanagement in this task will be influenced by externally determinedeconomic policies and resources (10.0), non-governmental resource flows(i.e., revenue to the firm) (17.0), supply signals received through thelabor market (13.0) and other formal and informal linkages betweenproduction and training (11.0, 16.0, 14.0) in signaling relative skillsscarcities and in guiding the orientation and design of trainingsystems.

METHODOLOGY AND DATA

1.31 The taxonomy was used to select a sample of 121 of the 213industry VET components in Bank-assisted investment projects financedbetween FY63 and FY86. These were chosen to be representative acrosscountry income levels, the four selected training modes and World Bankregions. 1/ The conceptual model was used as the basis for

1/ A detailed discu3sion of the methodology may be found in Annex I.

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an analysis instrument, which was in turn used to gather and organizeinformation on the selected components. Data were drawn primarily fromBank Appraisal ancl Completion Reports, and sector studies, augmented byinterviews with Bank project staff for selected countries.

1.32 Limitations in the data inevitably led to selectivity inapplying the elements of the conceptual model. In particular, detaileddata on the operation of labor markets and employing enterprises wasabsent from the documentation. Information on the components oftraining systems (especially on student and teacher characteristics)was rarely available. Thus the analysis that follows, while broadlystructured around the elements of the systems model, does not seek toaddress all elements. However, the variables that are addressed weredeveloped from this conceptual basis.

1.33 Finally, the study has informed by a comprehensive review ofthe literature on vocational education and training (Dougherty, 1988forthcoming), providing a broader context in which the implications ofWorld Bank experience can be interpreted.

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II. Characteristics of the Investments

2.01 Projects with VET components performed, in general, as wellas those directed at other subsectors of education. The dollar volumeof the projects and the enrollment capacity of the institutionssupported varied directly with the income level of the country ofinvestment. Overall, projects in Asia were larger, and had the bestinstitutional performance ratings. Evidence on investment costs perplace created indicates roughly comparable costs per graduate for thesecondary and nonformal institutions training skilled workers. Costsfor technician training at post-secondary levels, and for teachertraining, were higher than for secondary and nonformal institutions.Finally, the proportion of investment devoted to civil works hasdeclined over time, with corresponding increases in expenditures forfurniture and equipment and, to a lesser extent, technical assistance.

THE PROJECTS

2.02 The size of the projects from which sample components weredrawn varied from $3.1 million (Chad II) to $700 million (the KoreaSector Program for Higher Technical Education). Most notable is themuch smaller size of projects and VET components in low incomecountries and in Africa (see Tables 1 and 2). As would be expected,the average project and VET component cost increased with the incomelevel of the country. By region, the average project cost was highestin Asia ($90.58 million or $61.56 million excluding the Korea sectorprogram), followed by EMENA , LAC, and Africa.

2.03 VET components in Africa represented on average a muchsmaller share of total project costs than those in other regions. Thisreflects the small size of the investments and the greater tendency topackage these with components that supported other aspects of theeducation system.

2.04 Project costs increased over time, from an average of $18.13million for the years 1963-70, to an average of $36.09 million for theyears 1971-78, and finally, an average of $87.03 million for the years1979-86. Project costs also increased over time across regions, withthe exception of Africa, where only one project was implemented in the1963-70 time frame, at a cost of $19.10 million. The average forAfrica in 1971-78 dropped to $10.33 million and increased again to$48.34 in 1979-86.

* A summary description of the components analyzed may be found inAnnex II.

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Table 1: Sample Project and Coment Cost and Size,By Income Level, All Projects

Total * Total Total Total * Total AverageProjects Project Average Loan/ Average VET VET VET

Cost Project Credit Loan/ Components Component ComponentPlamned Cost (SAR) Credit Cost Cost

Low 16 578.31 36.14 355.50 22.22 23 314.49 13.67

Lower-Middle 36 1683.09 56.10 942.30 26.18 63 1395.11 22.14

Upper-Mlddle 24 2431.53 101.31 930.10 38.75 35 1213.62 34.67

TOTALS 76 4692.93 61.75 2227.90 29.31 121 2923.22 24.15

Table 2: Sample Project and Component Cost and Size,By Region, All Projects

Total * Total Total Total * Total AverageProjects Project Average Loan/ Average VET VET VET

Cost Project Credit Loan/ ComPonents Component ComponentPlamed Cost (SAR) Credit Cost Cost

Africa 16 478.10 29.88 283.10 17.69 26 180.10 6.93

Asia 22 1992.67 90.58 792.10 35.00 34 957.08 28.14

EMENA 25 1548.81 61.95 855.50 34.22 45 1274.21 28.31

LAC 13 673.35 51.79 297.20 22.86 16 511.83 31.98

TOTALS 76 4692.93 61.75 2227.90 29.31 121 2923.22 24.15

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Project Performance

2.05 There were 43 completed projects in the sample, many with bothVET and general education components. For these, average institutionalperformance as judged in Project Completion Reports for the project asa whole varied relatively little, and then more by region than byincome level. (Tables 3 and 4). The overall implementationperformance for these largely VET projects (2.32) is virtuallyidentical to the average rating (2.31) for a different subset of 43projects supporting all types and levels of education for whichcompletion reports were published in FY84 and FY85(Johanson, et.al., 1986).

Table 3: Project Size, Cost and Performarce,By Income Level, Completed ProJects

Total * Total Total Average Average AverageProJects ProJect Loan Total Cost Time Overrun Institutional

Cost Credit Overrun (Underrun) Performance*Planned Actual (SAR) Actual (Underrun) In Months

Low 6 99.25 100.17 63.80 61.93 .15 26.67 2.16

Lower.-Middle 19 475.56 583.37 270.40 243.39 5.67 33.78 2.31

Upper-Middle 18 1791.77 1644.27 618.20 447.91 (8.19) 32.44 2.38

TOTALS 43 2366.58 2327.81 952.40 753.23 (0.90) 31.44 2.32

*1 - Poor, 2 - Fair, 3 -good, 4 - excellent

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Table 4: Project Size, Cost and Perforwance,By Region, Completed Projects

Total * Total Total Average Average AverapeProjects Project Loan Total Cost Time Overrun Institutlonal

Cost Credit Overrun (LkUerrun) Performance*Plamed Actual (SAR) Actual (UWderrun) In Months

Africa 10 133.30 158.74 92.00 88.47 2.54 29.50 2.10

Asia 12 1196.44 1161.77 344.20 340.58 (2.89) 27.50 2.75

EMENA 12 641.95 638.92 346.00 155.37 (0.25) 29.67 2.25

LAC 9 394.89 368.38 170.20 168.81 (2.94) 41.22 2.11

TOTALS 43 2366.58 2327.81 952.40 753.23 (0.90) 31.44 2.32

1 - Poor, 2 - Fair, 3 - good, 4 - excellent

2.06 Overall, average actual project costs were very close toaverage planned costs -- there were cost underruns of only 1.6% for allprojects ($38.77 million). All projects experienced time overruns,from 3 months for Guinea I and Indonesia I to 100 months for Ecuador I(which has the distinction of being second in line for longest timeoverruns amongst all Bank education projects). The overall averagecompletion delay (31.44 months) is roughly the same as a sample of 21primary education components financed between FY72 and FY81 -- 32.4months (Romain, 1985).

2.07 In summary, for c.npleted projects, Asia had the mostsuccessful project implementation on average with a high institutionalperformance level (2.75), relatively modest time overruns (27.5 monthson average), and cost underruns of 2.9%. EMENA followed with a lowerinstitutional performance rating (2.25), cost underruns of 0.5% andtime underruns of 29 months. However, EMENA's institutionalperformance rating is higher (2.63) and its cost underruns becomeoverruns (25%) if the four t-.oubled Algeria projects are eliminated.

2.08 The institutional performance in the LAC region was 2.1, andcost underruns were 6.7%, but time overruns were quite high at 41.2months (although if Ecuador I is excluded, this drops to an average of30.1 months). Africa had a similarly low institutional performancerating, on average (2.1), the highest cost overruns (19%) and, on apositive note, the lowest average time overruns (27.5 months). It isnotable that the range amongst projects for these project data was notgreat -- between 2.1 and 2.75 for institutional performance and between

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27.5 and 41.2 months for time overmins; it was slightly higher '1or costunder/over runs (between 6.7Z and 19%)

2.09 Perrormance across income levels was mixed. The lower-middleand upper-middle income level co"ntries were similar, on average, interms of institutional performance (2.42 and 2.39 respectively) andtime overruns (32 and 32.4 months respectively). There were greaterdifferences between the two in terms of cost performance. Lower incomecountries had high overruns of 23%, whereas the upper-middle incomecountries had cost underruns of 8.27Z (or 6.8%, excluding Korea). Thelow income countries had a lower institutional performance rating(2.16), but wre completed closer to planned costs (1% overrun), andwith smaller time overruns (26.6 months) than the middle income levelcountries.

COMPONENTS AND INSTITUTIONS

2.10 What was financed in these projects? The data supportanalysis of the number and size of institutions supported, by modeincome level and region; the average planned total investment cost perplace; and the distribution of costs by category of expenditure.

Size of Institutions Supported

2.11 Overall, the total number of places appraised for 1,329project institutions was 6'2,558 with an average of 506.Post-secondary and secondary institutions were the largest, more thantwice the size, on average; of nonformal training centers (Table 5).These latter, of course, often use a training place several timesduring a year, and the secondary and post-secondary institutionstypically run formal two and three year courses. Thus size does notreflect output capacity. Teacher training institutions were on averageslightly larger than nonformal centers.

2.14 EMENA had the smallest average institutional size at 377.This can be explained partially by the predominance of nonformalinstitutions. Many of these address equity issues by providingtraining in small communities and rural areas, both through vocationaltraining centers and mobile training units. Nonformal institutions inEMENA were very small, with an average of 287 places (544 institutionsto provide 156,318 places) as were teacher training institutions, withan average of 435 places (13 institutions to provide 5,655 places).Secondary institutions were much larger with an average of 1,133 places(39 institutions to provide 44,170 places) as were post-secondaryinstitutions with an average of 1,041 (28 institutions to provide29,136 places).

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2.13 Africa had the second smallest institution size, on average,with 426 places. More than 60% of these institutions were secondaryschools; these were the smallest of this mode across regions. The sizeof these institutions reflects the relatively small populations andmodern sector employment markets in Sub-Saharan Africa countries.Moreover, many of the training institutions were established inlocations where future industrial development was anticipated (Chad II,Secondary; Cameroon II, Secondary; Tanzania VI, Teacher Training;Burundi II, Secondary; Zaire II, Secondary, Ethiopia VI, TeacherTraining). In such circumstances, with relatively uncertain employmentprospects, small institutions made sense. Africa's teacher traininginstitutions were smallest, followed by nonformal institutions,secondary schools, and post-secondary institutions.

Table 5: Average Size of Institutions Supported,By Mode and Region

Mode

OverallRegion Secondary Post- Non- Teacher I Sector

Secondary Formal Training I Averages

Africa 475 810 308 281 i 426

Asia 1295 930 665 318 i 837

EMENA 1133 1041 287 435 1 377

LAC 730 591 75 320 482

Overall 843 938 319 359 0 506Averages

2.14 LAC follows with an average institution size of 482 places(372 institutions to provide 179,148 places). The region had verysmall nonformal institutions; size increased progressively for teachertraining, post-secondary and then secondary institutions.

2.15 Asia had the largest planned institution size on average, with837 places. Many were located in areas of high industrial density;several were regional training centers or central workshops areasserving many schools (Indonesia). It was mainly the post-secondary andsecondary institutions which brought up the average in Asia. Nonformalinstitutions were smaller than either of these. Teacher traininginstitutions were relatively the smallest among the four modes.

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2.16 There is a clear parallel between the income level of thecountry and the average size of the institutions: low income countrieshad the smallest institutions, followed by lower-middle incomecountries, and upper-middle income countries (Table 6).

Table 6: Average Size of Institutions SupworterBy Mode and Income Level

ModeOverall

I SectorIncome Secondary Post- Non- Teacher : AveragesLevel Seconary Formal Traininrg

Low 334 N6o 228 273 1 341

Lower-Middle 778 OD2 305 405 I 379

LUwer-Ilddle 881 990 383 333 1 683

Overall 843 we 319 34S I 506Averages

2.17 This suggests that stronger economies with larger modernsectors have higher perceived demand for VET graduates.

Planned Costs Per Place

2.18 Given data on places supported and disaggregated cost datafor the components in the sample, it is possible to derive crudeindicators of the average total investment cost per place.

2.19 Interpreting cost comparisons across countries and trainingmodes for projects spanning two decades, on the other hand, presentsnearly insurmountable methodological problems. Input prices varysignificantly over time, snd among countries. Some projects constructnew facilities; others rehabilitate existing ones; many do both. Theinstructional program of an institution of a given mode in one countrycan and does vary significantly from that of an institution in the samemode in another country, with Important cost differences. Currencyexchange rates differ. Political and natural disturbances causesignificant delays and increase (or decrease) costs.

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2.20 In addition, the cell sizes for sampled components are, insome cases, quite low: post-secondary for Africa (1) and LAC (2);teacher-training for LAC(1); post-secondary for low income countries(2); teacher training for upper-middle income countries (3). Thislatter cell is heavily influenced by two components in Algeria whichwere intended to create 1500 places at a planned total cost per placeof $28,000.

2.21 This being said, the planned total investment cost per placehave been calculated for the 114 components in the sample for whichcomplete data were available. These crude figures give some notion ofthe ways in which costs have varied across regions, modes and countryincome levels (Tables 7 and 8).

2.22 Even given the caveats, it is instructive to compareinvestment costs for secondary and nonformal institutions. Asnoted, the labor market outcomes for graduates of these two modes aregenerally similar. Overall, nonformal places were on average a littleless than twice as expensive as secondary places. Given that, onaverage, nonformal courses last a year or less, and secondary coursestwo to three years, it is reasonable to estimate that the investmentcosts per graduate are comparable, and perhaps somewhat iess fornonformal graduates. However, significant variations in this ratioacross regions indicates that considerable caution must be used ininterpretation.

2.23 To control for input price differences and currencyfluctuations, these relative cost ratios were checked by comparingtotal investment unit costs in projects that supported more than twodifferent kinds of training institutions. There were 34 of these;complete data were available for 31. These comparisons confirmed the2:1 investment cost ratio of nonformal to secondary places.

2.24 There was considerably less variation in both totalinvestment and physical costs per place for secondary andpost-secondary components than for nonformal and teacher training.This suggests that the design of investments for these formal educationinstitutions has been somewhat more standardized across regions.Non-formal institutions, and teacher training programs, exhibitconsiderably more difference in design and, hence, per place costs.

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Table 7: Average Planned Total Investment Cost Per PlaceBy Mode and Reglon

All CoonIeDnts(US Dollars)

ModeOverallRegional

RegIon Secondary Post- Non- Teacher AveragesSecondary Formal Training I

Africa 3,837 3,975 21,959 30,064 1 8,458

Asia 1,065 7,368 4,040 9,816 1 4,041

EMENA 6,448 10,233 4,017 11,187 1 5,416

LAC 2,315 3,365 10,900 12,625 1 2,857

Overall 2,691 8,053 4,521 12,951 1 4,346Averages

Table 8: Average Planned Total Investment Cost Per Place,By MDde and Income Level

All Components(US Dollars)

Mode- Overall

Income-levelIncome Secondary Post- Non- Teacher l AveragesLevel Secondary Formal TralnIng I

Low 4,874 2,099 7,342 29,665 1 5,655

Lower-Middle 3,817 9,867 3,074 7,594 1 4,178

Upper-Middle 2,321 10,043 15,134 19,577 1 4,288

Overall 2,691 8,053 4,521 12,951 1 4,346Averages

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2.25 Average appraised total investment costs per place variedgreatly among the regions (Table 7). Africa had by far the highestaverage planned cost per place, although this decreases to $6,931 perplace if the costly teacher training components are eliminated from theanalysis. Africa is followed by EMENA and Asia. LAC had the lowestaverage planned cost per place at $2,857.

2.26 By income level, average appraised per place costs werehighest in the low-income countries (Table 8). This is heavilyinfluenced by the very high per place costs for nonformal componentsand teacher training.

2.27 Economies of Scale: A reasonable hypothesis is that atleast some of the variation in these unit costs can be accounted for byeconomies of scale. Other things being equal, larger institutionsshould have lower unit costs. Average institutional size and averagetotal investment costs per place, by income level, region and mode, areshown in Table 9.

Table 9: Average Institutional Size and Unit TotalInvestment Costs Per Place.By Mode, RegIon and Income Level

Secondary Post-Secondary Nonformal Teacher Training

Average Average Average Average Average Average Average AverageInstit. Unit Instit. Unit Instit. Unit Instit. UnitSize Cost Size Cost Size Cost Size Cost

Income Level

Low 334 4,874 866 2,099 228 7,342 273 29,665

Lower-Middle 779 3,817 902 9,867 305 3,074 405 7,594

Upper-Ulddle 881 2,231 990 10,043 383 15,134 333 19,577

Begl BM51a

Africa 475 3,837 LAC 591 3.365 LAC 75 10,900 Africa 281 30,064

LAC 730 2,315 Africa 810 3,975 ERENA 287 4.017 Asia 318 9,816

EMENA 1130 6,448 Asia 930 7,368 Africa 308 21,959 LAC 320 12,625

Asia 1295 1,065 EMENA 1041 10,233 Asia 605 4,040 EMENA 435 11,187

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2.28 A clear inverse relationship between average institutionalsize and average total investment cost per place emerges only forsecondary vocational schools by the income level of the country. Asimilar, but less strong relationship for secondary schools existsacross regions, with the EMENA unit costs diverging from the pattern.For post-secondary institutions, there is a consistent directrelationship by income level and by region: larger institutions havehigher unit costs. There is no clear direction for the relationship fornonformal and teacher training institutions.

2.29 These data further support the possibility that formalinstitutions, particularly secondary schools, have tended to follow amore standard design (paragraph 2.24).

2.30 Overall, these analyses suggest that economies of scale haveoperated to reduce unit costs for secondary components only.Most of the variation in investment costs are thus likely to beexplained principally by specific design features such as provision ofboarding places in Africa, or the relative costs of civil works andequipment in any particular investment.

Categories of Expenditure

2.31 Total project investment in civil works has been highest forpost-secondary institutions, in upper-middle income countries, and inthe EMENA region, with 68Z, 60Z and 64Z of expenditures respectivelysupporting construction. Furniture and equipment costs have beenhighest for nonformal institutions (44%), middle income countries(39%), and in the Asia and LAC regions (42Z). Technical assistance as aproportion of total investment has been significantly higher in Africa(12.3% planned, 8.7% actual). See Table 10.

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Table 10: Categories of Expenditure, By Mode, Regionand Income Level, ComPleted Components'

(percentages of total)

Civil Works Furniture & Equlpment Technical Assistance Other

Planned Actual Planned Actual Planned Actual Planned Actual

Nonformal 48 48 44 44 06 07 -0- 01Post-secondary 60 68 31 26 03 02 06*" 03**Seondary 60 55 38 42 02 02 01 01Teacher TraIning 57 58 32 30 11 12 -0- 01

Income Level

Low 40 44 22 23 13 08 25** 25**Lower-Middle 48 46 42 40 10 12 01 03Upper-Mlddle 59 60 38 39 02 02 01 -0-

Beln

Africa 54 59 31 29 12 08 02 04Asia 50 50 43 42 03 04 03** 04*"EMENA 64 64 31 32 03 03 02 01LAC 54 55 42 42 03 03 -0- -0-

TOTALS(X) 56 56 38 38 04 04 02 02

* Data available for 71% of completed projects, 67% of secondary components, 64% of post-secondarycomponents; 76% of nonformal components, and 57% of teacher training components.

Almost entirely due to unallocable costs In Bangladesh I post-secondary component.

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2.32 Higher proportions of the investments were allocated totechnical assistance for nonformal and teacher training components, inlow and lower-middle income countries, and in Africa.

2.33 These patterns have changed over time to give greateremphasis to furniture and equipment, with a lesser rise in technicalassistance (Table 11).

Table 11: Changes In Allocations by Category ofExpenditure, Two Time Periods, By Reglon

(percentage of total)

71Z- FY76

Civil Furniture Civil FurnitureRegion Works & Equipment TA Other Works & Equlpment TA Other

Africa 62 27 06 05 53 31 10 06

Asia 54 38 01 07* 47 45 07 01

EMENA 75 22 04 01 59 38 03 -0-

LAC 61 33 06 -0- 54 43 03 -0-

TOTALS(X) 63 30 03 04 54 42 04 01

* Largely for unallocable expenditures In Bangladesh I.

2.34 The shift away from civil works towards furniture andequipment, and to TA, reflects increasing attention to rehabilitationof existing systems in EMENA, and to a lesser extent in Asia and LAC.The increases in TA for Africa and Asia are due to institution-buildingcomponents in later projects.

2.35 These trends are the same as those identified by Schwartz(1988, forthcoming) for all VET investments for two different timeperiods. His analysis shows civil works accounting for 46% of totalproject cost for projects financed in FY79-81, and declining to 26% inFY84-86. Furniture and equipment costs increased from 22% to 30%, andtechnical assistance from 3% to 10% in the same two periods.

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SUMMARY

2.36 The size of the projects financed during this period, and ofthe VET components within them, varied directly with the income levelof the investment. The smallest projects and components were inAfrica, reflecting not only the predominance of low income countries inthe sample but also relatively small populations. The largest projectswere in Asia, with a higher proportion of middle income countries andwith larger populations. VET components in Asia, EMENA and LAC weresimilar in size.

2.37 These VET projects performed as well as other educationsector investments. Project performance, as measured by time overrrunsand institutional performance varied relatively little, and then moreby region than by country income level. By region, the bestperformance record was achieved in Asia and EMENA, followed by LAC.Overall, the projects had a very slight cost underrun. On completiondelays the projects compare favorably with primary education projectsfinanced during the period; the overall institutional performancerating is identical to the average for all education sector projectscompleted in FY84 and FY85.

2.38 On average the institutions supported were smallest in lowincome countries, and in EMENA. Total investment costs per placecreated were significantly higher in Africa, and in low incomecountries. These costs varied considerably across modes, income leveland regions; the data indicate, however, that the investment costassociated with producing a skilled worker is roughly equivalent forsecondary and nonformal institutions. Teacher training places havebeen most costly overall. Cost differences can be explained byeconomies of scale only for secondary institutions across incomelevels.

2.39 Finally, these investments have provided increasing supportfor furniture and equipment, and for technical assistance. Thesepatterns are consistent with recent emphasis on rehabilitation ofexisting training capacity and on institutional development.

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III. Investment Design

3.01 Investment in nonformal training has increased inmiddle-income countries, and in low-income countries other than thosein Sub-Saharan Africa. This trend reflects a pattern of investmentdesign that has increasingly emphasized the development of nationalvocational training systems built around nonformal training modes.Such systems have come to dominate investment outside of Sub-SaharanAfrica, and are beginning to be applied there as well.

3.02 The evolving patterns of design are reviewed in this chapter,beginning with the justification and planning approaches on which theinvestments have been based. The elements of project strategy are thenanalyzed: objectives, linkages between training and employment, demandgeneration, curriculum development, testing and certification, staffdevelopment and innovations in training delivery. The subsequentchapter provides an overview of the development of national systems,with attention to policy evolution, financing and the development ofplanning and management capacity.

JUSTIFICATION AND PLANNING

3.03 The economic justification for these investments was genera,lytied tco various scenarios for industrial growth. Other rationalesincluded providing manpower support for specific large-scaleinfrastructure development programs, sub-sector manpower needs,out-migration of skilled labor and remittance earnings, replacement ofexpatriates in the workforce, and equity considerations.

3.04 In Latin America and the Caribbean, economic strategiesemphasizing growth of manufactured exports were the basis forinvestments in El Salvador, Dominican Republic, Barbados, Uruguay andBrazil. In the latter case improving the level of technology inmanufacturing was also an explicit rationale. Similar justificationssupported investment in Korea and Malaysia.

3.05 Anticipated industrial growth fueled by petroleum exportsfigured prominently in the justifications for investments in Ecuador,Indonesia, the Ivory Coast and Cameroon. Sharp drops in oil pricesforced readjustment of economic strategies in these countries, withconsequent recurrent budget constraints.

3.06 Projections of farm mechanization and large hydro-electricsystem construction justified expansion of the supply of skilledworkers in Uruguay. Free-standing sector training systems for theconstruction industry were justified in Sri Lanka and Indonesia inlarge part to meet demand stemming primarily from government-financedconstruction, and to a lesser extent Middle East labor markets. In thecase of Indonesia, it was noted that half of domestic constructioncontracts were being awarded to foreign firms.

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3.07 A major factor in the economic justification was out-migrationof skilled workers from Egypt, Jordan, Pakistan, Bangladesh andIndonesia to the oil-based economies of the Middle East. By the timeof the seventh Pakistan project, worker remittances were the largestsingle source of foreign exchange. A significant portion of thetraining investment supported the continuing supply of such labor. Thereturn of workers as the oil-exporting economies contracted led tolabor *'arket instability in the 1980s. In Jordan, it produced anoversupply of workers in certain skills categories that, together withcontinuing demand for skilled workers, led the government to establisha labor market information system and re-orient the number and size ofcourses of different kinds in vocational training centers. In contrast,in Pakistan, returning workers appear to be easily absorbed by theeconomy, with many choosing to establish their own businesses (PakistaaSector Study, 1988).

3.08 The most prominent rationale in the low income countries ofSub-Saharan Africa was the need to replace costly expatriate managersand skilled workers. The same rationale was important in Morocco andAlgeria. Economic justifications for the low-income countries ofSub-Saharan Africa were also based on projections of growth. Economicanalysis tended to be less complex in these smaller economies, and tobe too optimistic. In the Cameroon, for example, a secondaryvocational school was built to provide skilled workers for intendedindustrial expansion in the northern region. Industrial developmentwas delayed, and graduates had to leave the region to find employment.

3.09 Equity Justifications: Only one of the sample ofcomponents was justified primarily on equity grounds: investment inboarding places for Tanzanian nonformal centers and technical secondaryschools was intended specifically to increase the access of ruralclients to the former and women to the latter. Increased access forrural groups to skills training was, however, an ubiquitous secondaryjustification: it was mentioned in connection with at least one (butnot necessarily each) component in each country in the sample. Accessfor women figured prominently in the justification of seven of the 76projects; most of these were in the EMENA region (Jordan, Turkey,Egypt, Pakistan, YAR, Barbados).

Planning

3.10 Virtually all of the sampled component investments wereplanned or. the basis of projected manpower requirements. In themajority of cases these were forecast from admittedly inadequate data,with appropriate caveats regarding the indicative nature of theestimates. Such estimates were then compared with the output ofexisting training systems and investments rationalized as (usuallypartially) closing the gap. In a majority of projects these estimateswere made by Bank staff or UNESCO consultants.

3.11 In a number of cases manpower requirements were derived notfrom global forecasts, but from enterprise surveys (Ecuador I, UruguayI, Cameroon II), and other indicators of employment needs. In this

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last category were industrial labor force growth, high demand to sitfor trades tests and requests for manpower from specific industries(Kenya V). Use of such indicators has increased, particularly in latersector work.

3.12 Benefit/cost ratios were calculated as part of thejustifications for the technical colleges in Turkey II and thevocational training centers in Morocco VI.

3.13 The data available from project evaluations do not permit acomparison of the relative effectiveness of these various planningapproaches. Few addressed the issue of actual manpower supply anddemand, and the use of enterprise surveys and other shorter-termindicators of demand is too recent to have been evaluated. However,the SAR for Egypt IV noted that manpower planning is hampered by therapidity of social and economic change, a general lack of useful data,a lack of coordination between ministries and agencies, and the effectof government recruitment and wage policies. Similarly, sectoranalyses in Jordan and Tanzania demonstrated the inaccuracy oflonger-term manpower requirements forecasting. These dif'iculties havealso been documented elsewhere in the literature (Dougherty, 1988forthcoming).

3.14 Labor market factors received very little attention inthe bulk of these investments. However, these became more importantin later projects in middle income countries and sector-specifictraining operations. The occasional use of enterprise surveys is notedabove (paragraph 3.11). The Sixth Morocco project was in partjustified on analysis of occupational trends from census data showingincreases in private sector employment of skilled workers andstagnation in government hiring. Census data on employment was alsoused in the Turkey II Industrial Training Project, which is alsopartially addressed to falling worker productivity, and includes bothskill and management training. Free standing training projectsdesigned to support one sector were justified on employment demandanalyses for public and private enterprises (Sri Lanka I and II,Indonesia Public Works Manpower Development).

Sector Work

3.15 Sector analysis has made important contributions to thedevelopment of national training systems across all regions. As shownin Table 12, prior sector work was an important basis for policy andinstitutional development investment in sixteen countries. 1/

1/ A more detailed analysis of sector work may be found in Annex III.Sector studies analyzed are listed in the Bibliography.

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Table 12: RelationshIp of Sector Work ToS&bsequent Investments

Studies Focused on Policy andInstitutional Development

Totalt.ier During After Later Focus No Sector *irk orof Investment Last on Science as.. Llttle

Region Countries Program Investment Technology Policy Content

Asia 5 4 2 1

EMENA 8 4 1 2 3

LAC 8 4 1 1 3

Africa 13 4 3 6

3.16 Table 12 addresses both the timing and the major impact ofsector analysis in country investment programs. Studies during theinvestment program that contributed directly to policy andinstitutional development components in subsequent investments areidentified, as are analyses which have come after the most recentinvestment. The incidence of recent studies which focus on science andtechnology development are noted. The last column shows the number ofcountries where sector work was either absent, or had relatively littlepolicy or institutional development content.

3.17 Sector work was not a pre-requisite to institution-buildinginvestment. However, it was associated with strong andgenerally successful efforts in larger middle income countries (Korea,Indonesia, Malaysia, Mexico, Brazil, Jordan, Turkey. Morocco). In

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Bangladesh and Pakistan, major sector work focused on policy andinstitutional issues has been completed since the most recentinvestment project, and should contribute substantially to subsequentpolicy dialogue.

3.18 An explicit focus on science and technology development hasemerged in later stages of analysis investment in five middle incomecountries (Korea, Malaysia, Brazil, Jordan and Turkey). Linked withearlier investments in skilled worker and technician development, theseinitiatives represent an important direction for the improvement ofindustrial productivity that builds on established technical aducationsystems.

3.19 Heavy emphasis on sector analysis in Asia, Latin America andEMENA is notable in comparison with Africa. In the four of the fiveAfrican countries where current projects are assisting the developmentof national training systems, or contributing to institutionaldevelopment at a somewhat lower level, sector analysis played animportant part in shaping the investment (Ivory Coast, Cameroon,Ethiopia and Senegal). Prior sector work in Kenya is less directlyrelated to policy and institutional issues. As these projects areunderway, the contribution of sector work to successful policy asndinstitutional development cannot be judged.

3.20 In three African countries sector work carried out subsequentto the most recent investment has begun to lay the groundwork forpolicy and institutional development (Chad, Zaire and Burundi). Thus,in sector work, while investment programs in Africa are at an earlierstage of development, there are indications that progress is beingmade. The value of sector analysis in other regions suggests that thiscurrent effort should be strengthened and accelerated.

STRATEGIES

3.21 A project strategy is a particular combination of objectives(ideally derived from the goals of broader sector plans) and actionelements thought necessary for those objectives to be achieved undergiven circumstances. The objectives for the sample of components areanalyzed below, together with six key action elements: 1) linkagesbetween training and employment; 2) generation of demand for places inVET institutions; 3) curriculum development; 4) testing andcertification; and 5) staff development;

Obiectives

3.22 Analysis of the multiple objectives of sample componentsindicates that, in general, project inve tments in Africa were theleast -- and nonformal components the most -- complex in terms ofintended outcomes. Somewhat greater emphasis on institutionaldevelopment objectives was found in middle income countries. Over

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time, the objectives of investments shifted to give greater emphasis toupgrading worker skills and to increased access to vocational trainingfor disadvantaged groups.

3.23 The percentage distributions of the 505 objectives stated for121 components across regions, modes and country income levels areshown in Table 13. Data were collected on two kinds of objectives. Thefirst, "objectives for clients," includes those which are directlyrelated to various outcomes of training for students. The second,"objectives for systems development," includes objectives relatedprincipally to institutional development for the VET system. 1/

3.24 In interpreting these data, it is important to recognize thatthe percentages reflect the share of all obiectives of a given typethat fall into a particular category, and not the proportion ofcomponents with a given type of ob~jective. For example, the dataindicate that 41% of the objectives for African components wereclassified as "manpower expansion" objectives. All but one Africacomponent had such an objective. Thus the data serve as overallindicators of the degree of emphasis given to objectives of a giventype. To take yet another example from Africa, the data indicate equaland primary attention to manpower expansion and improving the qu&lityof training. Upgrading worker skills received about 10% of theemphasis, and improved access for disadvantaged groups about 05%.

3.25 African components had, on average, fewer objectives,reflecting the relatively small size of components and the greaterproportion of secondary vocational school components with relativelysimple designs. Components in LAC, Asia and EMENA had moreobjectives, with marginal differences between them overall. Each ofthese regions invested more heavily in relatively more complexnonformal modes. On this particular indicator, LAC also gave moreemphasis to systems development objectives.

3.26 As noted, nonformal components addressed the largest number ofobjectives, both for clients and for systems development. Post-secondary components were least complex in terms of objectives;interestingly, within this smaller number of objectives thesecomponents gave a somewhat higher ratio of attention to systemsdevelopment (.45).

1/ The list of objectives was developed from the VET literature andfrom preliminary analysis of a set of SARs, and refined throughpre-testing of the questionnaire.

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Table 13: Percentage Distrlbution of Component ObjectivesBy Region, Mode and Country Income Level

Region Mode income LevelType of Post- Non- Teacher Lower- Upper-Objective Africa Asia EMENA LAC SeconLary Secondary Formal Training Low Mlddle Middle

Oblectives for ClientsManpower ExPanslon 41 34 40 33 39 48 30 49 34 37 39

Improve Training Quality 42 35 33 35 38 46 30 41 37 34 37

Reduce Youth Unemployment -0- 05 03 04 01 02 05 -0- 05 03 02

Reduce Other Unemployment 02 04 03 02 01 -0- 05 -0- 05 02 04

Reduce Pressure on -0- 02 02 02 04 -0- 01 -0- -0- 01 05Higher Education

Upgrade Worker Skills 10 07 10 24 09 -D- 17 08 14 12 08

Change Attitudes Towards -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0-Blue Collar VDrk

lprove Access of Groups 05 12 10 -0- 08 04 11 03 05 11 05

Subtotal (X)* 100 100 100 100 100 100 100 100 100 100 100(n) (59) (94) (110) (46) (77) (46) (149) (37) (59) (166) (84)

Average Per Component 2.27 2.76 2.44 2.88 2.40 1.92 3.17 2.05 2.57 2.63 2.40

Objectives for OverallSvstems Devel omentIm,rove Policy.Plaming or Analysis 31 36 32 29 30 27 37 20 30 33 31

Improve Management 28 34 27 31 23 30 30 47 30 28 32

Strengthen Linkages 39 19 39 34 43 41 27 27 28 35 34With Employers

Other 03 11 03 06 04 03 06 07 13 04 02

Subtotals (X) 100 100 100 100 100 100 100 100 100 100 100(n) (39) (47) (75) (35) (47) (37) (97) (15) (40) (103) (53)

Average Per Component 1.08 1.38 1.66 2.19 1.47 1.54 2.06 0.83 1.74 1.63 1.43

TOTAL NLUBER OF OBJECTIVES 98 141 185 81 124 83 246 52 99 269 137

AVERAGE PER COMPONENT 3.76 4.15 4.11 5.06 3.88 3.46 5.23 2.88 4.30 4.26 3.91

RATIO OF SYSTEMS .40 .33 .41 .43 .38 .45 .39 .29 .40 .38 .39

OBJECTIVES TO THE TOTAL

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3.27 Few differences appear in comparisons across country incomelevels in terms of the average number of objectives for clients.Somewhat more emphasis was given to systems development in the low andlower-middle income countries, as might be expected, leading to aninverse relationship overall between the income level and averagenumber of objectives per component.

3.28 Objectives related to manpower expansion and qualityimprovement were dominant in Africa (83%), and post-secondary andteacher training components (94% and 90%, respectively). Thesecombined percentages exceeded other regions and modes by at least 10%.Components in other regions, and supporting other modes, addressed agreater variety of objectives. Upgrading worker skills was the thirdmost frequent objective. Its distribution indicates that it receivedgreatest emphasis in LAC and in nonformal components, and in the lowerincome countries.

3.29 Objectives related to improving the access of disadvantagedgroups (rural clients, ethnic minorities, women) were given moreemphasis in Asia and EMENA, and in nonformal components. Relativelyless attention was given to these objectives in Africa, inpost-secondary components, and in lower-middle income countries.

3.30 Interesting by their comparative scarcity are objectivesrelated to changing attitudes towards blue collar work, reducingunemployment, and reducing pressure orh higher education. Theseobjectives are often discussed as possible functions of VET. At aformal level, at least, they have received relatively little attentionin Bank-supported investments in these modes. 1/

3.31 The data indicate roughly equal attention to each of the threesystem development objectives overall. Less emphasis was given in Asiato objectives related to establishing linkages between employers andtraining institutiors, and relatively more to policy, planning analysisand management. Linkages received less attention (in terms of numbersof objectives) in nonformal and teacher training components, withplanning and management, respectively, receiving more. Again, nopatterns of difference emerge across income levels.

1/ Somewhat surprisingly, only two of the seventy-nine diversifiedsecondary projects supported by the Bank have had such objectives(Haddad and Conly, 1987).

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3.32 Overall, the data on objectives suggest that nonform'lcomponents and components in LAC, EMENA and Asia were more complex,seeking to address more issues. African and post-secondary componentswere least complex. Manpower expansion and improvement in the qualityof training were the dominant aims of all investments, with someattention being given to upgrading worker skills and improving accessfor disadvantaged groups.

3.33 Few differences are observed across country income levels.This may suggest that, in terms of the intended outcomes selected byproject designers, the nature of the economy has received relativelylittle attention.

3.34 Changes Over Time: The data in Table 13 reflect more thantwenty years of investment history. The pattern of emphasis ondifferent objectives has changed over this period. Although thechanges have been relatively small, they indicate reduced emphasis onmanpower expansion and quality improvement and increased attention toupgrading worker skills and improving access for disadvantaged groups.The data, disaggregated for three time periods, are shown in Table 14.Only data for the four most frequently cited client objectives aregiven.

Table 14: Changes In Percentage Distribution of ClientObjectives, Three Time Periods: SLmmary Data

liLme PerodsType ofObJective FY63-70 FY71-78 FY79-87

Manwaer Expansion 41 39 35

Improve Training Quality 41 37 34

Upgrade Worker Skills 06 09 14

Improve Access of Grouvs -0- 07 09

TOTALS (%) 88 92 92

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3.35 On a regional basis, the changes are most striking for Africaand EMENA (Table 15). In both regions emphasis on upgrading workerskills and improving access to training increased over time, whileemphasis on expanding manpower supply declined. LAC maintained a verystrong emphasis on worker upgrading.

3.36 These shifts were most marked for nonformal trainingcomponents (Table 16), where worker upgrading and improved access grewin importance to assume 30% of emphasis in terms of objectives. Asimilar pattern of increase is observed for secondary components.Post-secondary components changed very little in emphasis. The recentshift towards worker "upgrading" in teacher training componentsreflects more formal attention to in-service teacher training.

3.37 Similar analysis of the data for systems developmentobjectives indicates a shift toward policy, planning and analysis, andto management, from the second to the third time period, and acorresponding decrease in attention to linkage development. Thisgeneral pattern holds across modes and across country income levels.It reflects, primarily, the large number of components in investmentsequences, in which attention in earlier projects was directed towardsdevelopment of linkages, and in later projects towards systemdevelopment through policy, planning and management development.

Table 15: Percentage Distributlon of ClientObjectives, Three Time Perlods: By Region

Fiscal Year of SAR

Type of Afrhica Sia DEA LA9ObJective 63-70 71-78 79-87 63-70 71-78 79-87 63-70 7'L-76 79-87 63-70 71-78 79-87

arpower Expanslon 50 46 36 33 38 33 43 38 50 33 30

Improve Tralning 50 41 42 33 33 37 * 41 29 50 33 35aIlIty

LUgrade Worker -0- 05 15 11 03 11 * 08 11 -0-** 25 25SkilIs

Improve Access -0- 05 07 -0- 18 09 * 03 14 -0- -0- -0-of GrouPs

TOTALS(x) 100 97 100 77 90 90 95 82 100 91 90

*No projects financed In EMENA during this period that were Included In the sample.Only one project financed In LAC durlng this perlod.

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Table 16: Percentage Distribution of ClientObjectives, Three Time Periods: By Mode

Flscal Year of SAR

Seem^dary Post-Secodarv Nonformal Teacher TrainingType ofObjective 63-70 71-78 79-87 63-70 71-78 79-87 63-70 71-78 79-87 63-70 71-78 79-87

Marvower Expanslon 36 43 35 50 48 48 50 32 29 * 46 50

Improve Training 36 41 35 50 43 48 50 30 30 -0- 46 39QuaIty

LUOgade Worker 09 05 14 -0- -0- -0- -0- 17 17 -0- -0- 11Skills

Improve Access of -0- 08 10 -0- 05 05 -0- 08 13 -0- 09 -0-Groups

TOTALS (X) 81 97 94 100 86 91 100 87 89 -0- 91 100

* No teacher training components financed In this period In the sample.

Linkages Between TraininR and Employment

3.38 Articulation between vocational training and employment iswidely accepted as a crucial factor in the cost-effectiveness oftraining. It can facilitate the match between the supply of trainedpersons and job opportunities, and increase the relevance of vocationalcurricula to job skill requirements. It can also improve the abilityof training institutions to adjust both curricula and the volume oftraining to rapidly changing labor markets.

3.39 The pattern of linkage arrangements in the completedcomponents in the sample indicates that more attention was given todeveloping linkages for nonformal training institutions than forpost-secondary irstitutions and secondary vocational schools.Moreover, the linkage arrangements for nonformal components have beenmuch stronger in establishing the information flows and trainingservices relationships that facilitate demand-driven training that isresponsive to changing labor market requirements. -

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3.40 The incidence of linkage arrangements, by mode, forcompleted projects is shown in Table 17. 1/

Table 17: Incidence of LInkages, By ModeSample of Completed Industry VET Components,1963-82*

Nuiber of Percent of Percnt of AverageComponents Components Components Nunber ofIn the With With 2 or Linkages Per

Mode Sample Linkages More Links Component

Non-formal 21 76 62 2.56

Post-secondary 14 54 43 2.28

Secondary 24 63 17 1.53

TOTALS 59 64 38 2.16

Of comonents InitIated between 1963 and 1982 for which evaluatIonsare available.

3.41 A higher proportion of nonformal components had at least onearticulation arrangement, and these had on average a greater number oflinking mechanisms. This is consistent with the general designdifferences between the nonformal and formal institutions, with theformer generally intended for more specific occupational training,including in-service courses for workers. The relatively lowerincidence of linking mechanisms for secondary vocational schools isconsistent with their general role of pre-employment training combinedwith general education. To the extent that linkages facilitate balancebetween supply and demand for skills, it is also consistent with thedifficulties many of these institutions have encountered in placinggraduates in employment (Dougherty, 1988 forthcoming).

1/ Linkages for teacher training components are not included in thisanalysis. There were such linkages, both with the schools in whichinstructors would work and, very occasionally, with relevantenterprises. But the incidence is too small for statistical analysis.

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3.42 The transition from school or training center to work isespecially difficult in economies with small modern sectors and lowrates of growth. In such circumstances employers are likely to havefewer incentives to invest time or resources in linkages withpre-employment training. A rough indication of the effect of differenteconomic contexts on articulation can be taken from the data in Table18.

Table 18: Incidence of Articulation Arrangements, By CountryIncome Level: Sample of Completed Irndktry VETComponents, 1963-82

mber of Percent of Percent of AverageComponents Comxnents Components NLber of

Country in the With With 2 or Llrkages PerIncome Level Sample Linkages More Links Coment

Low 7 71 30 1.00

Lower-Middle 29 62 32 2.22

ltper-ilddle 23 65 48 2.33

TOTALS 59 64 38 2.16

Of comPonents Initiated between 1963 and 1982 for which evaluationsare available.

3.43 While the proportions of components with at least one type oflinkage were roughly the same, the average number of linkages increaseswith the level of the economy. The evaluations of these componentssuggest that most components in low income countries encounteridgreater implementation problems in general, and the establishment oflinkages suffered accordingly. Low income components also had greaterdifficulty in achieving enrollment targets by the time of projectcompletion, and were correspondingly less successful in meeting targetsfor the supply of trained graduates to labor markets. This generalweakness in the supply and demand relationship may have weakenedemployer interest in establishing a range of linkages. Unfortunately,very little data is available on these components regarding placementrates after graduation, making it impossible to assess labor marketoutcomes.

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3.44 Also of interest is the nature of the linkages that wereattempted. Table 19 shows the incidence of nine types of articulationarrangements across the sample of components.

Table 19: Percentage of Linked Components With AGiven Linkage Type, By Mode: Sample ofCompleted VET Industry Cowponents, 1963-82

Type or Non- Post-Llnkage Formal Secondary Secondary

Employer 50 60 71Counc Is

OJT/lnternships 43 27 88In Curricula

Employers 58 -0- 14Finance Training

Employer Staff 13 07 43As Teachers

Contract Tralning 38 13 14For Employers

Employers Provide 31 20 -0-Labor MarketInformation

Employers Provide 08 -0- -0-Training In Schoolor Center

Student CounselIng -0- 13 -0-& Placement Services

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3.45 "Employers councils" have been an important mechanism forarticulation foc all modes. But for nonforms' !nstitutions these havebeen accompanied by other significant linkage )otably employerfinancing and contract training, the provision -f training on the jobas part of curricula, and labor market information. Councils forpost-secondary institutions were also bolstered by other linkages,including on-the-job training and the use of employer staff asteachers.

3.46 In contrast, secondary school councils were much less likelyto be supported by other linkage mechanisms. And indeed, thesecouncils were somewhat less likely to be effective than those fornonformal and post-secondary institutions, especially in low incomecountries. Evaluations of these components suggest that in these casesemployers had little reason to find such councils meaningful inconditions of low demand for workers, and that school administratorsfound it difficult to act aggressively to establish linkages giventraditional views of the role of "schooling."

3.47 Training in Enterprises: Provisiorn of training servicesdirectly to enterprises provides an exceptionally strong link betweentraining and employing institutions. These services can range fromon-the-job and evening upgrading for workers on site, to trainertraining and the development of enterprise training capacity.

3.48 The development of such services was an important later stageof investment in half of the thirty-four countries in the sample(Table 20).

Table 20: Incidence of Provision ofTraining Services to Enterprises,By Region and Time Period

Number of Countries investingNumber of In Enterprise Tralning ServicesCountries

Region In the Sample Before FY79 FY63-8B

EMENA 8 0 4

LAC 8 6 8

Asia 5 1 4

Africa 13 0 1

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3.49 These services were all developed from nonformal traininginstitutions, and in all but three countries were created as anintegral part of a national training system supported by the Bank.Fourteen of the seventeen countries fall into the middle incomecategories. And the three low income countries (Senegal, Pakistan andBangladesh) have relatively developed industrial sector employment.Many of these arrangements have been established in currently ongoingprojects, for which evaluations are not available. However,evaluations do indicate suzcess in Jordan, Korea and Brazil.

3.50 In sum, the evidence suggests greater attention toestablishing articulation arrangements for nonformal institutions thanfor post-secondary and secondary institutiona, in part because of thenature of nonformal training systems. Councils have been moreeffective when supported by a range of other articulation arrangements.And it appears more difficult to establish linkages for secondaryvocational schools in low income countries. This latter conclusion isof some importance, given the prevalence of both stagnant labor marketsand vocational secondary schools in many low income ceuntries.Provision of training services to enterprises is a relatively recent,but now widespread, form of linkage with considerable potential.

Demand Generation

3.51 The low status of blue collar work in many societies has ledin many cases to low regard for vocational education and training ascompared with general, and especially higher, education. While none ofthe components sampled had as an objective changes in such attitudes, arelative few made conscious use of incentives and public informationactivities ("training supply signals") in an effort to attract goodstudents to the VET system.

3.52 The most common incentives were scholarships and allowancesfor students, often including free or low-cost boarding. This strategywas pursued, for example, in the YAR, in Tunisia and in Morocco. Suchmeasures were also seen as equity strategies, increasing thepossibilities for disadvantaged students.

3.53 Public information campaigns to attract students were mountedin two of the components. In Egypt, these were reported to beunsuccessful. However, in recent investments in Mexico, the nationaltraining institution (CONALEP) has successfully used advertising togenerate high levels of demand for training places. This innovativeapproach has used radio, television and press advertising aimed atimproved public understanding of the quality of CONALEP training aswell as employment prospects for graduates.

3.54 Perhaps the most comprehensive program of demand generationtook place in Korea. To encourage able students to enroll in bothtechnical high schools and vocational training centers, the governmentprovided scholarships, exempted graduates scoring above 50% on thenational skills licensing examination from military service, andpermitted the top 10% of secondary graduates to enter college. In

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addition, two national "flagship" institutions were created, asecondary technical school and an "industrial masters college" toprovide in-service training in productivity, occupational safety andadvanced technologies to selected senior technicians. One of theobjectives for these institutions was to enhance the status oftechnical occupations. While VET was reported to continue to be asecond choice for parents and students, these policies generated1.5-2.0 applicants for every VET place. Expanding industrialemployment, of course, was also an important factor.

Curriculum Development

3.55 Investment in curriculum development was a nearly universalfeature among sample components. The exceptions were in Africa, wherefive secondary components were planned with no overt curriculumdevelopment activity (Gabon II, Gambia I, Burundi II, Zaire I, TanzaniaVI). Some curriculum development activity undoubtedly took place;however, in comparison with all other components, it receivedrelatively little attention. These components were financed betweenFY72 and FY80.

3.56 Curriculum development in most Africa components was closelyassociated with reliance on expatriate instructors and teachertrainers. Much of the curriculum work was led by these residentspecialists, working with counterparts, and was integrated within-service teacher upgrading. However, with the exception of laterinvestments in the Cameroon and Senegal, relatively little investmentwas made in permanent curriculum development capacity.

3.57 In LAC, EMENA and Asia the creation of institutional capacityfor curriculum development was a common feature. In some cases, as inPakistan, Brazil, Jordan and Cameroon, this capacity was developed aspart of an overall national training system. In Egypt, Turkey, Mexicoand Ecuador special materials development units were established. Inother countries, this function was integrated with multi-functionsystems development and support units, such as the Korean NationalVocational Training Management Agency and the Korean Institute forResearch in Vocational Training; the Polytechnic Education DevelopmentCenter in Indonesia; and the National Institute for Maintenance TradesAdministration in Algeria. Institution-building of this type wascharacteristic of middle and late stages of investment programs.

3.58 Investments in these three regions were also much more likelyto support curriculum development based on occupational analysis, withsignificant input from industry, and to employ modular curriculumapproaches -- often with ILO advice and assistance. Occupationalanalysis, by basing training objectives on the skills required fordefined jobs can lead to increased training efficiency. Only necessaryknowledge and skills are taught; shorter and more focused trainingleads to efficiency gains; and post-training performance is more

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immediately productive. Partial exceptions to these approaches werefound in early projects in Malaysia and Algeria, which faced continuingdifficulties with overly-theoretical curricula. These problems werelater addressed through curriculum reform activities.

Testing and Certification

3.59 Standardized skills testing and certification can playimportant roles in VET systems. At one level, they promote labormobility by enabling workers to establish their credentials withemployers. Standard certification reduces the costs of recruitment toemployers, who do not need to invest in their own testing system. Atanother level, they set standards of achievement that can guidecurriculum development and serve as criteria for monitoring theperformance of training institutions. And, as Korean experiencesuggests, they can provide the data on system performance essential toother important incentive policies.

3.60 While not necessarily the best approach to testing, nationalsystems have generally been seen as the most effective place to beginthe development of testing capacity and, in particular, to provide thenational-level standardJ'zation that contribute to labor mobility.Table 21 summarizes, for the 34 countries in the sample, the incidenceof national testing systems and of Bank support for them.

Table 21: Support for Testing andCertification System, SampleCountrles, By Income Level

Number of Countries

Income Total With National Supported byLevel Sanvie System the Bank UrLknown

Low 12 4 1 8

Lower-Midd.e 13 10 7 3

LUpper-Middle 0 3 3 6

It is likely that most of the countries listed as 'unknown" did nothave national testing systems during the period of the investmentsreviewed; it is certain that any Bank support for such systems that mayhave existed was incidental. Using this assumption, national testingand certification systems have been developed in just half (17) of the34 countries in the sample.

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3.61 Testing and certification systems were more prevalent inmiddle-income countries, and were more likely to receive Bank support.Bank financing assisted in the development of national testing systemsin Kenya, Korea, Indonesia, Sri Lanka, Bangladesh, Jordan, Turkey,Brazil, Uruguay, El Salvador and Ecuador. Development of thesesystems typically spanned several projects.

3.62 Unique among all countries in the sample, Korea instituted anational system for accreditation of post-secondary junior colleges.Coming towards the end of the investment program, this scheme sought toestablish and enforce quality standards for both public and privateinstitutions. While problems were encountered in enforcement in theearly stages of the effort, the government was reported to be intent onestablishing the system.

3.63 Where national systems were not put in place, investmentstypically supported the development of testing capacity at theinstitutional level as part of curriculum development efforts.

3.64 Tracer studies and other monitoring mechanisms (such as labormarket surveys) received relatively little attention. Indeed. one PCRrecommended against them because of implementation difficulty(Indonesia). In some countries, however, these have provided usefulfeedback on systems performance (Korea, Jordan), though their use isfar from routine or widespread.

Staff Development

3.65 The continuing availability of an adequate number of qualifiedinstructional staff is crucial to the efficiency and effectiveness ofVET institutions, regardless of mode. Provision for teacher educationor training was even more pervasive than curriculum development, withsome level of investment in every country in the sample. However, theproblems of teacher supply difiered across regions and over time, andwere addressed in several ways with varying success (Table 22).

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Table 22: Factors In Instructlonal StaffDevelopment, By Country

Number of Countrles With:

Teacher TeacherIn Suply Problem Tra'^Ing In-service Fellowship Expatriate Teacher

Region Sample (unIknown) Institutlon Compxnent Training Teachers Incentives

Africa 13 9 (2) 5 5 5 9 3

Asia 5 4 (1) 3 5 3 0 4

EMENA 8 5 (2) 5 6 5 2 4

LAC 8 4 (1) 20 7 4 0 3

*Includes Institutional arrangement In one cowtry not stpWrted as a separateproJect component.

3.66 Six dimensions of teacher supply and development in thecountries in the sample are presented in Table 22. The number ofcountries for which the documents report a significant problem ofteacher supply is shown, together with the number for which thedocumer.tation is ambiguous. The incidence across countries of the fivemost common strategic responses to the problem are also shown. Theseare 1) the creation of a teacher training institution; 2) provision oforganized in-service training; 3) the use of fellowship training abroadfor instructors on instructor trainers; 4) the use of expatriateteachers; and 5) the use of ircentives of various kinds to attract andretain qualified teachers.

3.67 The problem of ensuring an adequate supply of teachers wassignificant in ell regions, though less so Latin America. Indeed,there were only six countries where the supply of instructors wasclearly sufficient without further investment. In Africa these arewere Tanzania and Kenya; the EMENA country is Turkey. In all threecases the projects in the sample were appraised relatively recently(after FY79), and teacher training institutions (and in the case ofTurkey, strong teacher salary incentives) were in place. The three LACcountries where significant supply problems were not reported wereBarbados, Brazil, and Uruguay. In Brazil and Barbados, competitivesalaries were a well-established policy. In Uruguay, budgetcornstraints turned the government from full-time teachers to a policyof hiring part-time instructors from industry. This resulted in highquality, attractive extra income for teachers, and low costs.

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3.68 Without exception the West African countries struggledthroughout the period with the problem of training, attracting andretaining indigenous teachers. Notable has been the continuingreliance on expatriate teachers, despite the creation of teachertraining institutions, provision of in-service training by expatriateadvisors, and heavy use of fellowships to train instructors abroad.These countries have found it more difficult to provide salaryincentives for VET instructors, and to provide scholarships and otherincentives for teacher trainees, than have those in other regions.Salaries were increased in the Cameroon and Zaire, and scholarships forteacher trainees made available in Senegal. Even these countriescontinue to rely on expatriate teachers. This factor contributessignificantly to the high unit costs of VET in the region, and thedifficulty many governments are facing in supporting recurrent costbudgets.

3.69 The problem of teacher supply in many African countries isrendered more acute by virtue of the small population base, andconsequently the small size of training institutions. The extremelyhigh cost per place of VET teacher training in Africa must be seen inthis context (paragraph 2.25).

3.70 Loss of teachers to higher paying jobs in industry and, to alesser extent, teachers' lack of industrial experience were theprincipal problems addressed in Asia and EMENA. Expatriate teacherswere used in just two of the 13 countries. In the YAR, the sequence ofBank investments established a vocational training system where verylittle capacity existed. Expatriate teachers figured prominently inthe staffing of secondary, post-secondary and nonformal institutions.Through fellowship training and local in-service efforts a cadre ofYemeni instructors for the nonformal and secondary institutions beganto emerge over time. A unit to train secondary instructors wasestablished in the polytechnic created with most recent project in thesequence. Expatriate instructors continue to play an important, thoughdiminished role. Algeria sought throughout the period to reducereliance on expatriate instructors at post-secondary and secondarylevels, creating teacher training institutions in projects financed inFY78 and FY80.

3.71 The latter of these, the National Institute for MaintenanceTrades Administration is representative of the multi-purpose systemssupport institution that was created in a number of countries in theseregions. These typically have the mandate for curriculum development,teacher education and training, and to a lesser extent research andevaluation. Other examples include the Polytechnic EducationDevelopment Center in Indonesia, and both the National Institute forResearch in Vocational Training and the Technician Education ResearchInstitute in Korea. The former is located on the campus of a teachertraining college; of the latter, the first is attached to the Ministryof Labor and the second to the Ministry of Education. In smallercountries (such as Ecuador) the same function was established lessformally through training and materials development centers. While

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information on the effectiveness of these institutions is sparse, thedata that are available indicate that these are making importantcontributions to system quality.

3.72 Some problems in the quality of local and internationalfellowship training were encountered, but on the whole these activitiesappear to have been well implemented. In Malaysia, for example, earlyteacher training activities did not adequately address the need forpractical experience or training; this was linked to similar weaknessesin the curricula of the vocational secondary schools. Instructors sentabroad in early Egypt projects encountered language problems. Theneed to improve quality was addressed in Indonesia by providing scienceand mathematics education for skilled workers entering teachertraining, practical workshop training for graduates of generaleducation, and six months of supervised practice teaching for both.

3.73 More difficult were problems of attracting and retainingqualified instructors where salaries in industry significantly exceededthose of education and training posts. In the late 1970s in Egypt, forexample, skilled craftsmen could earn a salary in the private sectorfour times that of a VET instructor. This problem was confronted inPakistan, Egypt, Jordan, Bangladesh, Malaysia, Korea and Indonesia. Itwas anticipated for the Turkey investments in the 1980s: there salarieswere set to be equivalent to those of supervJsors in industry.

3.74 In all cases, salaries were increased. Additional allowancesand benefits, including staff housing, were provided in many countries.Scholarships were used to attract qualified persons into teachertraining programs, with bonding arrangements that requiredpost-training service in instructor posts. Instructors were recruitedon a part-time basis from industry.

3.75 The most comprehensive incentive program was developed inKorea. Faced with significant loss of instructors as the industrialsector expanded, the government instituted a package of incentivearrangements. These included scholarships, exemption from militaryservice, and bonding arrangements for teacher trainees. Teachertraining was given an institutional base, and linked with curriculumdevelopment. Salaries and allowances were increased. Staff housingwas provided for instructors in the vocational training centers.Teachers were recruited from those leaving military service, and on apart-time basis from industry. At higher levels in the system, effortswere made to attract overseas nationals back to teaching posts. As thesequence of investments ended shortages continued to exist due tosystem expansion, but on the whole the policies succeeded in providingan adequate base of instructional staff.

3.76 Salaries competitive with industry were important in assuringan adequate supply of instructional staff in Barbados and Brazil.The Brazilian national training organization (SENAI) is reported tohave developed a very effective methodology for teacher training.

.

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3.77 In two LAC countries the use of part-time instructors fromindustry has been a successful strategy. The experience in Uruguay hasbeen noted earlier (paragraph 3.67). In Mexico, the extensive nationalnonformal training system is predicated on the use of part-timeinstructors from industry. This has had the advantages of good qualityin highly practical training and relatively low cost. However,turnover is high, requiring the system to be capable of continuousrecruitment and training. Conflict between work and training schedulesduring the middle of the day has also created difficulties; theresponse has been to adjust training schedules. In a third country,Ecuador, the use of part-time teachers in early stages of systemsdevelopment was problematic lue to poor training.

3.78 In sum, developmeat of an adequate supply of qualifiedinstructional staff requires a program that combines training withappropriate incentives, both to enter training and to remain in theteaching force. Training alone, or even competitive salaries alone,is not generally effective. Integrated support institutions can playan effective role, linking training with curriculum development andother services. The scale and degree of formalization of suchinstitutions, of course, depends on the size of the system.

Innovations in Training Delivery

3.79 By far the larger proportion of the institutions financedfollowed a traditional training delivery model comprised of classroomand workshop instruction, complemented in most postsecondary and abouthalf of the nonformal components by internships or on-the-job trainingin the workplace. In about a third of the countries this model wasextended or reinforced in some way. Most frequent was the attempt touse mobile units to bring training to rural areas and smallenterprises. Other innovations included area vocational centers tosupport a cluster of vocational secondary schools in Indonesia, the useof educational technology. in Brazil and Turkey, and subsidizedfinancing of private junior colleges in Korea.

3.80 Mobile Units: These were most frequently included in LACprojects (six of eight countries), and in EMENA (three of eightcountries). In Asia, they have been a strategy element in Indonesia.No mobile units were financed in Africa in the components sampled.

3.81 The record indicates that mobile units can be successful, butgenerally are not. Effective use is found in Brazil and Paraguay. Inboth cases mobile units were based in decentralized regional vocationaltraining centers with good management. The units were well utilizedand, in both cases, were reported to be effective in extending trainingservices. No data on cost-effectiveness are available.

3.82 Experience in other countries suggests that mobile units weregiven relatively low priority. They were reduced in number, droppedfrom project financing, or delayed to future projects in Indonesia, El

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Salvador, Ecuador, and the Dominican Republic. No information on thefate of the mobile units is available in the remaining four countries,suggesting at least that they were not a marked success.

3.83 Indonesia Area Vocational Centers: Technical training centerswere developed in the first two VET investments in Indonesia. To belocated within bicycle distance of the 2-4 vocational secondary schoolsthey would serve, these centers provided common workshop and laboratoryfacilities. Although some problems were encourntered in developingadequate staffing in all specializations, the concept proved workablewith "reasonable" unit recurrent costs.

3.84 Educational Technology: While it is likely that simpleaudio-visual technologies were widely used across the components, onlyfor Brazil and Turkey does the documentation give any attention to thesubject. It notes for the former that the nonformal training agency(SENAI) made good use of technology in teaching; in the laterinvestment explicit provision for the development of audio-visualmaterials is made.

3.85 Private Schools: It is striking that the private trainingsector figured in only one of the thirty-four countries in the sample.The Korea Sector Loan for higher technical education provided asignificant level of subsidized loan financing for expansion andequipping improvement in private junior colleges and colleges ofengineering. This resulted in significant progress towards theachievement of MOE standards for facilities and equipment despiteexpanded enrollments.

SUMMARY

3.86 The economic justifications of these components rarelyaddressed short and medium-term labor market demand factors, relyingheavily on general manpower requirements forecasts based on assumptionsregarding economic growth. Where such growth did not materialize (aswas the case in most low income countries), these forecasts weregenerally inaccurate. Most were done by Bank staff or UNESCOconsultants with weak data. It is also reasonable to assume, given aparallel lack of attention to shorter-term planning, that manpowerforecasting diverted attention from establishment of more flexible andresponsive planning mechanisms. This is especially troublesome forsecondary institutions in low income countries, where linkagedevelopment was also weak. On the positive side, many investments inlow income countries addressed the need to replace high-cost expatriatemanpower with locally trained workers. These efforts have been only

a partially successful.

3.87 Labor market factors and shorter-term planningperspectives have received greater attention in later projects inmiddle income countries, most of which have supported the developmentof national training systems based on nonformal delivery modes.

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3.88 Relatively little has been done in these components to addresstraining opportunities for women, although a general thread of concernfor better access for disadvantaged groups in general runs through theinvestments. Improving the income of disadvantaged groups, like mostemployment issues, will require more than training. Attention toemployment codes and practices, and management attitudes and capacity,is also needed. There is no evidence that these issues have beenaddressed in the components sampled.

3.89 Sector analysis has been important in middle stages ofinvestment programs, generally leading to significant investments ininstitutional development in middle income countries. Increasingattention in these countries is being given to science and technologydevelopment, representing a latter stage in the evolution of VETsystems. Sector work in Africa is beginning to contribute to policyand institutional development, although the frequency and policyrelevance of sector analysis in the region have lagged behind that inothers.

3.90 Project objectives for most training investments in theAfrican region (the majority of which were secondary vocational schoolcomponents) tended to be less complex than in other regions. Nonformalprojects were guided by fairly complex objectives. Manpower expansionand improvement in the quality of training were the dominant aims ofall investments; over time, the objectives of investments gave greateremphasis to upgrading worker skills and to increased access tovocational training for disadvantaged groups, especially in Asia andEMENA. Time studies also indicated a shift toward policy, planning andanalysis, and to management (see next chapter on systems development),with a corresponding decrease in attention given to linkage developmentas these became increasingly institutionalized.

3.91 More attention was given to developing linkage relationshipswith employers in nonformal than in other types of traininginstitutions. It was difficult to establish linkages for secondaryvocational schools in low income countries. This is of concern due tothe prevalence of stagnant labor markets and vocational secondaryschools in many low income countries. Provision of training servicesto enterprises, a relatively new form of linkage associated withonformal centers, promises considerable potential.

3.92 Overall, few attempts were made to generate demand fortraining places; in cases where attempts were made to attract goodstudents to the VET system, they were successful only in Mexico andKorea.

3.93 Investment in curriculum development was a nearly universalfeature. In Africa, most curriculum development was associated withreliance on expatriate instructors and teacher trainers. In LAC, EMENAand Asia, the creation of institutional capacity for curriculumdevelopment was a common feature. In these three regions, curriculum

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development was more likely to be based on occupational analysis, withsignificant input from industry, and often employed modular curriculumapproaches.

3.94 National testing and certification systems were reportedlydeveloped in about half of the 34 countries in the sample, and weremore prevalent in middle-income countries.

3.95 Ensuring an adequate supply of teachers was a significantproblem in all regions, especially in West Africa where traininginstitutions relied heavily on expatriates; this has contributed to thehigh unit costs of VET in the region. Problems were encountered inattracting and retaining teachers in EMENA and Asia due to salaries inindustry which significantly exceeded those of education and trainingposts. A successful approach undertaken here by several countries wasto increase salaries and offer other benefits. Indications are thatintegrated support institutions which link training with curriculumdevelopment and other services can make an important contribution tosystem quality.

3.96 Relatively little innovation in training delivery hasbeen supported in these investments. The few examples include the useof mobile units, area vocational centers, the use of educationaltechnology, and subsidized financing of private post-secondarytraining training institutions.

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IV. The Development of National Training Systems

4.01 Over time the objectives of these investments shifted to givemore emphasis to developing the planning, management and curriculumdevelopment capacities of VET. In Latin America, EMENA and Asiasequences of project investments led in most countries in the sample tothe development of national training systems, largely built aroundnonformal training institutions.

INVESTMENT IN INSTITUTIONAL CAPACITY

4.02 The numbers of projects with relatively high levels ofattention to institutional capacity increased dramatically at the endof the 1970s (Table 23). Emphasis was judged significant when acomponent had clearly identified institutional development objectives

Table 23: Project Inwestuent Emphasis on DevelopingInstitutlonal Plamning, Management andCurriculum Development Capacity.

.Y79 and Later FYh8:79 Overall

Region Significant Some None Slgnificant Some None Slgnificant Some None

AFRICA 4 1 3 0 0 8 4 1 11

ASIA 11 - - 1 4 6 12 4 6

EMENA 12 2 2 2 3 4 14 5 6

LAC 5 0 0 6 0 2 11 0 2

TOTALS 32 3 5 9 7 20 41 10 25

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based on an analysis of institutional constraints, and a relativelyhigh proportion of resources (especially technical assistance) devotedto these objectives. In a number of these cases institution buildingwas designed as a separate component. "Some" emphasis was judged to bepresent when institution-building objectives were less clear and basedon much less analysis of constraints, and when resources wereproportionally lower. In components judged to have no institutionbuilding investment there were undoubtedly some marginal activities,often through the work of technical advisors, but no formal objectivesor analysis.

4.03 The shift in emphasis from FY79 onwards is striking. Alsonotable is that LAC, and to a lesser extent EMENA, assignedconsiderable importance to institution building even before FY79. Suchinvestments began only after FY79 in Africa.

4.04 Analysis of the patterns of investment over time indicates theimportance of the "cluster" sequences of several projects in a givencountry to institutional development. 1/ Twenty-seven of the projectsjudged significant in this respect from FY79 onwards were later stagesof longer-term programs of two or more investments. In a number ofcountries (Indonesia, Korea, Jordan, Malaysia, Bangladesh, Ecuador,Cameroon) the patterns indicate gradually increasing investment ininstitutional capacity across the sequence of projects.

4.05 Both before and after 1979 there were a number of investmentsthat did not incorporate institution-building strategies, and whichwere not followed later by projects that did. All of these were inAfrica (Swaziland, Burundi, Chad, Zaire, Gabon, Guinea, Gambia). Thesewere small investments: some were troubled (Zaire); others providedassistance on a relatively small scale to a few training institutions.It is important to note that in five larger, more industrializedAfrican countries later projects in investment sequences did haveinstitution-building components (Ivory Coast, Cameroon, Senegal,Kenya, Ethiopia).

The Development of National Systems

4.06 The primary result of these investments in institutionalcapacity has been the development of national training systems in allsample countries in LAC, Asia and EMENA. Current projects aresupporting the various stages of systems development in Cameroon,Ethiopia, Senegal, Kenya and the Ivory Coast in the Africa region.While varying in detail, these systems focus on non-degreepre-employment training and in-service upgrading for workers, areadministered by a quasi-autonomous organization or a strong element of

1/ See Annex IV for this analysis.

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the Ministry of Labor, and are financed in a variety of ways beyonddirect government budgets. Some provide broad national coverage forindustrial training; others are restricted to a particular sector. Tnmost cases formal vocational education remains a separate functionadministered by the Ministry of Education.

4.07 The status of these systems as reflected in the most recentBank SARs or PCRs is summarized in Table 24. Changes in thelonger-established systems may have occurred; in some cases systems areunder development in current projects. The data thus reflect policiesand objectives that have been and are being supported by Bankinvestments, not a necessarily accurate and up-to-date assessment ofsystem configuration.

Table 24: The Development of National Training Systems

Year ofReglorVCountry Initiation Agency National Sectoral Fiiancing Policy

El Salvador 1978 Industrlal Training System X Payroll Tax Levy (not(not Inplemented) lrplemented)

CENAP - National Productivity XCenter

Dominican 1979 INFOTEP X 1X Payroll Tax LevyReptbdlc

Barbados 1979 National Training Board X O.5X Payroll Tax Levy

Brazil 1976 National Vocational Tralning X 1X Payroll Tax LevySystem

Paraguay 1971 SNPP X 1X Payroll Tax Levy

Uruguay 1983 COCAP - Natlonal Vocational X Government FInancingTralnIng Council Student fees cover all

recurrent costs

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Table 24: The Development of National Training Systems(cont Inud)

EMIYear of

Reglon/Country Initiation Agency National Sectoral Financing Policy

MexIco 1978 CONALEP X Goverrnent FinancingStudent fees cover 3% ofrecurrent costs

Production fundsIn-kind contributions from

Ecuador 1966 SECAP X 0.5% Payroll Tax Levy

Bwanladesh 1979 National Couci I for X Goverrunent FinancingSkills Development

Sr I Lanka 1988 National itstitute for X Goverrnent FinancingConstructlon Trainingand Development

Malaysla circa National Cotmcil for X Goverment Financing1980 Vocational Training Payroll Tax Levy

(to be reorganized) (to be Introduced)Student fees (offset by2/3 scholarships)

Study on Incentives forEnterprise Tralning

Korea 1976 Korean National Vocational X Goverrment FinancingTraining Management Ageriy Enterprises train 10% of

Korean institute for Research X workforce anrually or payon Vocational Training training levy

Technician Education Contract trainingResearch Institute Sibsidized loans for

private schools

Indonesla 1983 National Ministry of PubilC X Cost recovery from privateWorks Training Center sector firms

1986 National Vocatlonal Training X Goverment FinancingSystem

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Table 24: The Development of National Trainig Systems(cont Inued)

Year ofRegion/Couwntry Initiation Agency National Sectoral Flnancing Pollcy

Pakistan 1980 National Training Board X Goverrenat FlnancingFInancing Stuoy InitIated

Egypt 1981 Central Coordinating X Governuent FinancingComittee

(no Institutional base)

Jordan 1976 Vocatlonal Training X 1% Payroll Tax (to beCorporation Ilalemented circa 1986)

Contract training

Morocco circa Office of Vocational Training X Payroll Tax Levy1980 and Enployment Promotlon (to be Introd&ced)

Tunisia 1981 Office of Vocational Tralning X Goverrment Financing

Turkey 1978 SEGEM - Industrial Training X Government FinancingAuthority Revolving Production Funds

Student Tuition(YoK: Hlgher Educatlon Commission In-kind contributions fromfor postscondary VET) enterprises

YAR 1977 Vocational Training Board X Government Financing1988 National Techtical Tralning

Board (to be established)

(Under Ministry of Educatlon)

Algeria 1980 Natlonal Institute of X Government FlnancingMaintenance TradesAdministration

Cameroon 1982 CENAFOP X Government Financing

Senegal circa ONFP -National Center X Fixed Payroll Levy1979 for Vocational Tralning (to be introduced)

Contract training for 25%of recurrent expenditures

(estimate)

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Table 24: The Development of National Tralning Systems(continued)

Year ofReglon/Cr,untry Initiation Agency National Sectoral Flnancing Policy

Kenya - Dlrectorate of Industrial X Training Levy on IndustryTrainling

Mlnistry of Labor

Ivory CoJast circa - Payroll Tax Levy1980 (to be Introduced)

Ethlopla circa Ministry of Education X Poverrment Financing1985

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4.08 From a systems building perspective, the accomplishments ofthe past decade in the sample countries in LAC, Asia and EMENA havebeen remarkable. The institutional framework for delivery of jobtraining for industrial employment has been established, or is beingdeveloped, in seventeen of the twenty-one countries. Traininginstitutions with a narrower focus have been initiated in twoadditional countries (Sri Lanka and Algeria); Indonesia is developingboth a national system and a training institution specific to theconstruction industry. There has been one significant investmentfailure. This came in El Salvador, where severe financial constraintscoupled with civil disorder led to cancellation of some projectelements and the inability of the government to implement the policyreforms on which system development depended. Systems development inAlgeria had a troubled beginning, but seems to be underway in laterinvestments. And the creation of a Central Coordinating Committee inEgypt lacks the institutional base that has characterized othereffective systems.

4.09 Systems development has proceeded more slowly in the Africaregion, currently being supported in five of the thirteen countries inthe sample. However, it is notable that of the eight projects financedfrom FY79 onwards, five support institutional development at somelevel. Two of the remaining three were financed in FY79. Thus sinceFY80 a similar focus has evolved for Africa, although for a relativelyfew of the countries in which the Bank has invested in VET.

4.10 These systems have evolved largely in middle income countries.The exceptions are Senegal, Sri Lanka, Pakistan and Bangladesh. Theindustrial sector in the first three is large by low-income countrystandards, accounting for 26-29% of GDP as compared with a low incomecountry average (excluding China and India) of 19%. Only Bangladeshfalls below the average (at 14%), but has a large population and arelatively large absolute industrial employment base.

Financing

4.11 Movement away from direct government financing towards avariety of alternative financing policies has accompanied thedevelopment of most national systems. The bulk of the exceptions arelow or lower-middle income countries (Bangladesh, Sri Lanka, Pakistan,Cameroon, Indonesia, Egypt, the YAR, Tunisia). Direct governmentfinancing provides the sole or major source of support for trainingsystems in only two middle income countries: Mexico and Algeria.

4.12 Payroll tax levies have been the system of choice in eleven ofthe twenty-one countries. This policy failed in El Salvador, and wasonly partly implemented in Ecuador, due to resistance from industry.Where implemented, payroll taxes have had the advantage of providing astable source of funding support for the development of nationalsystems. The incidence of such taxes, however, may fall on workers orconsumers. . Thus, desp,ite popular claims to the contrary, they donot necessarily represent enterprise financing for training (Whalleyand Zlderman, 1988, forthcoming).

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4.13 Student fees provide partial support to the training systemsin Malaysia, Turkey, Mexico and Uruguay. In the latter case these areto cover all recurrent costs; in the others the amount of revenue issmall. Contract training, sale of products and in-kind contributionsfrom industry are additional, chough apparently minor, sources ofrevenue.

4.14 With the exception of payroll tax levies in the LAC region,most systems are new or are currently being put in place. Noassessment of effectiveness is possible outside of Latin America.Payroll tax systems there are generally reported to functioneffectively. The effectiveness of such schemes in raising revenueshas, in recent years, led to considerable debate in Brazil as towhether these should continue to be earmarked for training ordistributed more broadly across a range of social services.

4.15 The importance of stable funding for system development, andthe effectiveness of payroll taxes in providing such stability, arewell demonstrated. Indeed, the continuing reliance on directgovernment financing is the major constraint being faced by theotherwise successful national training system in Mexico (CONALEP).

4.16 Financial support for the expansion of private technicaleducation in Korea has been noted (paragraph 3.85). The generalsystems for financing of the private schools is of some additionalinterest. Student fees have been the principal source of revenue, withthe amount closely regulated by the government. Private donations,deductible from income tax, also provide some revenue. The low-levelof fees relative to costs of technical education generally required theprivate institutions to offer less expensive programs, use less costlyinputs (including teaching staff), and/or increase class size. Thesemeasures, of course, have negative implications for quality. As theSector Program ended, the Bank recommended gradual liberalization offees, perhaps combined with scholarship programs to counter adverseimpact on equity.

Planning and Management Deve'.opment

4.17 Two related planning and management capacity issues are facedin investment projects. One is project planning and implementation;the second is the development of the planning and management capacityof project institutions and of the overall system. In practice, theseissues are closely inter-twined. Project Implementation Units (PIUs)carry out management development activities, they plan for new invest-ments and they often form the initial core of the permanent institu-tional arrangements that manage the system as it develops.

4.18 Judgements were made on the overall planning and managementeffectiveness of each completed component in the sample. These judge-ments took into account both PIU performance and the performance, wheredata was available, of project institutions. It was also hypothesizedthat the level of financial resources would have an impact on manage-

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ment effectiveness. Judgements on the adequacy of component financingwere also made.

4.19 These data indicate that management performance was signifi-cantly stronger in Asia, EMENA and LAC than in Africa. And, as mightbe expected, it varied directly with the income level of the country.There was relatively little variation across modes of training(Table 25). The level of management effectiveness was directlyassociated with the adequacy of financing across income levels, and forthree of the four regions. No clear relationship emerges by mode.

Table 25: Coqoxnent Management Effectiveness and Adequacyof Financing, By Reglon, Income Level and Mode

Percent ofCoqMonents With

Average Management AdequateEffectiveness Scorse Financing

Africa 1.9 29Asia 2.9 89EMENA 2.2 48(Without Algerla) (2.7) -

LAC 2.7 50

Inome LevelI

Low 2.2 10Lower-Middle 2.4 52Lpper-Mlddle 2.5 76(WIthout Algeria) (3.2) -

kka (Without Algerla)

Secondary 2.5 (2.61) 63Post-secondary 2.2 (2.45) 64Non-formal 2.5 (2.55) 43Teachtr Tralning 2.3 (2.50) 43

Overall Averages 2.4 (2.55) 55

*1 - Poo(; 2 - Fair; 3 -Good; 4 - Excellent

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4.20 Algeria is shown separately in the effectiveness analysisbecause, over a sequence of five projects with six components, anunusually large number of management problems occurred. The scores forthese components significantly distort the overall ratings for EMENAand Upper-middle income countries; a lesser effect is noted by mode.

4.21 There were two main kinds of problems in the Algeriainvestments. One was structural. The responsibility for variouscomponents and institutions was shifted between ministries, with littlecooperation and poor coordination. A major effort to decentralizeadministration encountered significant problems due to weakpreparation. Local staff were untrained and communication systems wereweak. Under these conditions procurement and construction sufferedbadly; major portions of the third project were cancelled.

4.22 The second was poor relationships between the government andthe Bank, leading to disagreements over project implementation. Banksupervision was reported to have been weak. These difficulties appearto have been partially resolved in the current project, although thelack of a central Project Implementation Unit is raised as a concern inthe SAR, as is the need for close supervision from the Bank.

4.23 Problems with financing were clearly of importance in themanagement of projects in the Africa region, particularly West Africa.Currency fluctuations contributed, as did the difficulties governmentsencountered in providing counterpart funds and adequate recurrent costbudgets. Weak funding had significant impact on maintenance ofbuildings and equipment. Management was also hampered by lack ofqualified staff, and high staff turnover in project units. Therelatively high proportion of single project investments in the region,combined with weak PIU performance, made the development of ongoingplanning and management capacity difficult. These problems wereaddressed in later projects in the Cameroon and Senegal.

4.24 There were some positive lessons in the Africa experience.Management training was effective in strengthening project implementa-tion in the Gambia. In Guinea an instructor training component wasintegrated under a single administration with two postsecondaryinstitutions. Despite problems with PIU management effectiveness, thisinstitutional arrangement was reported to have worked well. Goodprogress was made in the second Senegal project towards replacement ofexpatriates with Senegalese in the project unit.

4.25 The stronger management performance in Asia is associated withrelatively strong financing support for components and institutions. Avery strong record of management and capacity building was developedover the course of the investments in Korea. Beginning with initiallystrong management capacity in the Ministry of Education and relativelysmall investments in existing secondary and postsecondaryinstitutions, the government was successful in developing expandedmanagement capacity as projects grew larger and more complex. Keyelements in the record include differentiation between vocationaleducation, managed by the Ministry of Education, and nonformal

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vocational training managed initially by the Ministry of Labor andeventually by the semi-autonomous Korean National Vocational TrainingManagement Agency, with support from the Korean VocationalTraining Research Institute. Strong linkages with industry throughoutthe period were important to management effectiveness. Decentralizationof authority on curriculum and industry relationships came towards theend of the investment sequence as the Vocational Training Centers wereconverted into semi-autonomous corporations under local industryboards.

4.26 In contrast, after a promising beginning with the firstproject, management in Indonesia deteriorated. Weak PIUs hamperedefforts to develop management capacity. Linkages with employers didnot develop. As in Korea, vocational education and nonformal trainingsystems were established in separate ministries. The current manpowerdevelopment project has as its major focus the development of theplanning and management capacity of the Ministry of Labor and itsnonformal training system. Increased authority for vocational trainingcenters is envisaged. The construction sector training projectincludes measures to decentralize authority to regional trainingcenters. Teacher training institutions in Indonesia were well managed,in large part because they were attached to existing teacher trainingcolleges.

4.27 In the EMENA region, problems of inadequate finance affectedprincipally Egypt and the YAR, in the former case affecting teachersupply and in the latter provision of boarding places. Strongmanagement performance in Jordan has also rested on the establishmentof a semi-autonomous management agency for the system (the VocationalTraining Corporation), with clear differentiation between the formaland nonformal systems. Similar organizational arrangements have beenestablished in Morocco, Tunisia and the YAR. Bank investments inTurkey have benefitted from the existence of strong and relativelyautonomous management organizations. SEGEM, the nonformal trainingagency, was established with UNIDO assistance nearly a decade beforethe current Bank project. In Egypt, generally good managementperformance has been constrained by the involvement fact of severalministries in developing their own VET systems. The need forcoordination led to the creation of a Central Coordinating Committee in1981.

4.28 Decentralization of authority to district training centers inthe YAR and Turkey is reported to be successful, as is regionalizationin Tunisia and Egypt. The difficulties encountered withdecentralization in Algeria have been noted.

4.29 Ir LAC investments, inadequate funding challenged managementin Ecuador, El Salvador, the Dominican Republic and Uruguay. Again,the impact was felt primarily on maintenance and recurrent budget forinstructors and staff. As noted previously, in Uruguay adjustments toreduced budget resources were made successfully, in part because ofcompetent management.

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4.30 Two themes stand out in the development of systems managementcapacity in the LAC region: autonomous national training organizationsand decentralization of planning and management. National trainingbodies were established in each of the eight countries in the sample.These were least successful in early stages in El Salvador, the Domini-can Republic and, to some extent, in Ecuador. In these cases weakPIUs, caused by low salaries and lack of clear authority, hampered sys-tem development. They were notably successful in Brazil, Uruguay, andMexico. In all cases save El Salvador these institutions, at projectcompletion, were reported to have established a workable organizationalstructure as the basis for future development.

4.31 Decentralization policies were implemented in Brazil, Mexico,El Salvador, Ecuador and the Dominican Republic. The general model wasto devolve considerable decision-making power to regional vocationaltraining centers with respect to curriculum planning and relationshipswith employers. In the three small countries decentralization was atfirst less than successful due to inadequ3te preparation of local man-agement capacity. In Mexico and Brazil the pLlicies have been veryeffective, supported by good managers and strong ties to employers.

4.32 In sum, planning and management performance is adverselyaffected by inadequate financing. Effective system management is asso-ciated with training agencies with a relatively high degree of autonomyand some degree of decentralization. Implementation of this latterpolicy, however, can be problematic if inadequate attention is given topreparing decentralized units for increased autonomy and responsibil-ity.

SUMMARY

4.33 The pattern that emerges from the analysis of investmentstrategies is clear. Increasing emphasis in middle income countrieshas been given to the creation of national training systems. These arebuilt largely on nonformal training modes, are well linked withemployers, generally seek to develop alternative financing schemes, andincorporate professional support institutions that establish thepermanent capacity for curriculum development and teacher training.Testing and certification systems provide feedback to systems managersand to employers on performance. Curriculum development is often basedon occupational analysis, providing another practical link betweentraining and employment.

4.34 Management of these systems is most often based in autonomousor quasi-autonomous training agencies, or as units of the Ministry ofLabor. Many systems employ a significant degree of decentralization inorder to strengthen training center responsiveness to local industryneeds. Decentralization strategies, however, have encounteredimplementation difficulties where adequate preparation of decentralizedunits has not been undertaken.

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4.35 Such systems may be under development in current projects in alimited number of countries in Sub-Saharan Africa. However, most ofthe early investments in these countries have been small projectssupporting a few vocational secondary schools; in later years thesehave supported nonformal training centers. Sustained investment insystems development has been relatively rare. Evidence that lack ofclear policy and systems development goals continues to hamper thedevelopment of training capacity is found in the continuing reliance onexpatriate instructors in many countries.

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V. Performance

5.01 The .valuation of vocation&aly-specific education andtraining should ideally be carried out against a hierarchy ofobjectives. The ultimate objective is economic efficiency, measured byassessing the economic benefits of training (usually productivity asreflected in earnings). The next lower objective in the hierarchy isplacement in employment, a necessary but not sufficient criterion forecon-omic efficiency. At this same level employer satisfaction withgraduate performance provides a weaker but useful standard. Next comescourse completion or graduation. This in turn rests on a number ofinternal efficiency measures, such as drop out and repeater rates.Enrollments as a proportion of capacity can serve as an initialindicator of institutional relevancy and efficiency. All of thesemeasures can, and ideally should, be assessed against costs, yielding arange of efficiency and cost-effectiveness indices.

5.02 Fundamental to all of these measures, of course, is theactual establishment of a training institution. From the perspectiveof World Bank project investments this is an implementation criterion,one bound by the initiation and completion dates of a given project.

ECONOMIC OUTCOMES

5.03 A review of Bank investments based primarily on documentanalysis is severely limited with respect to the indicators ofinvestment effectiveness that can be used. Economic analyses of theoutcomes of Bank investments are absent from project completionreports.

5.04 Reliable unit recurrent cost data is almost entirely lackingin project documentation. Recurrent costs were reported for11 of the 76 projects in the sample (8 of 34 countries). The figuresare most often developed by dividing gross recurrent cost budgets byenrollments across a set of institutions.

5.05 These data, however, generally confirm that vocationalsecondary schools are more costly on an annual unit recurrent costbasis than general secondary schools, with ratios ranging from 1.5:1 toas much as 11:1. Nonformal annual unit recurrent costs are about twiceas high as in secondary vocational schools (Table 26).

5.05 In a very few instances collateral studies shed light onrates-of-return to investment. These show relatively high returns tononformal training in Latin America (Kugler and Reyes, 1978; Jimenez,1986). An analysis of returns to nonformal and secondary vocationaltraining in Korea indicates somewhat higher returns to nonformaltraining (Lee, 1985); returns to both equal or exceed returns togeneral secondary education as measured four years earlier (seePsacharopoulos, 1987).

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Table 26: kynual Unit Recurrent Costs(US Dollars)

GeneralVET Institutions Secondary Institutions

Amual Unit Arual UnitRecurrent Recurrent

Country InstitutionAlode Costs 1/ Costs 2/

Ivory Coast Secondary Technical 1260 (1980) 885 (1980)

Korea Secondary Technical 162 (1976) 186 (1980)659 (1979)2039 (1980) 3/

Vocational Tralning 1250 (1979)Institute (NF)

Malaysla Secondary Technical 350 (1976) 146 (1976)

Industrial Training 800 (1984) 353 (1984)Institute (NF)

Jordan Secondary Polytechnic 1070 (1979) 90 (1980)& Trades TrainingCenter

Brazil Secondary Technical 1200 (1977) 206 (1980)

Equador Secondary Technical 150 (1977) 113 (1977) 11

El Salvador Vocational Training 159- (1975) 118 (1975)Center (industrial 378streams)

Mexico Secondary Technical 349 (1985) 69 (1985)

1/ Source: Staff Appraisal and Completion Reports.2/ Source: UNESCOX/ These costs were for a very sophisticated model' technical school.

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5.07 Data on placement, employer satisfaction and graduation ratesare generally uneven. In the sixty-six completed componants in thesample studied for this review, these data are available in usablefrequency only for the Asia projects (see Table 27). These tellus more about the difficulty of evaluating projects at completionthan about outcomes. They also reflect the relatively strongerimplementation capacity of the countries of Asia, at least in the sensethat project institutions were more often completed in time forstudents to graduate and seek employment prior to project completion.However, while no cross-regional comparisons are possible, the data doshow that, on the criteria of graduation rate, placement and employersatisfaction the VET investments in Asia have had quite good outcomes.

5.08 These have included secondary vocational schools in Korea andsecondary area vocational training centers in Indonesia, polytechnicsin these two countries as well as in Malaysia, and nonformal trainingcenters in Korea and Malaysia. Non-formal training centers inIndonesia have had a record of low quality and poor externalefficiency, as has the polytechnic supported in the first Bangladeshproject. In this region, at least, effectiveness has not beenassociated with a particular mode of training, but rather withexpanding employment demand, good systems management capacity, and goodtraining quality.

Table 27: Evidence on Outcomes, By Reglon,Completed ProJects

Grackiation Rate Placement Rate Employer Satisfaction Rate(component average) (% of all components) (% of all components)

Percent of Percent of Percent ofComrPonents Components Components

Region Rate With Data 5X 50-69% 70-89% 90M With Data Poor Fair Good Excellent With Data

Africa 51 25 6 0 0 0 6 0 0 0 0 0

Asia 81 56 6 6 44 28 83 0 6 50 17 72

EMENA 100 05 0 0 10 05 14 0 0 05 0 05

LAC 74 20 0 0 10 20 30 0 0 0 0 0

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IMPLEMENTATION OUTCOMES

5.09 While information on the criteria at the top of thehierarchy is scarce, we do have data on two related implementationstandards. The first (Table 28) is the percentage of enrollmenttargets achieved at project completion. These figures, of course, donot capture the eventual enrollment performance of projectinstitutions, many of which suffered from significant delays in projectimplementation. But they can be taken as indicators of the relativedifficulty encountered in establishing training institutions in givenmodes in countries of different income levels.

Table 28: Percentages of Enrollment Targets Achleved at CompletlonBy Mode and Income Level, Completed Industry VETProjects, 1963-82

VETPost- Teacher

Income Level Secondary Non-formal Secondary Tralning TOTAL

Low .19 -0- .64 1.05 .41

Lower-Mid .93 .86 1.16 .88 .90

Upper-Mid 1.16 .99 .83 .43 1.09

WeightedAverages 1.08 .90 .91 .74 1.00

5.10 On this criterion, the implementation difficulties faced bylow-income countries are clear. The data tend to confirm commonknowledge regarding the relationship between overall economic strengthand implementation capacity. 1/ They also provide same limitedconfirmation of the hypothesis that secondary vocational schools are onthe whole easier to establish (or rehabilitate) than the more complexnonformal modes in countries at all income levels, and especially so inlow income countries with the weakest implementation capacity.

11 The relatively low ratio for teacher training in upper middleincome countries is explained by very low ratios in two Algeriacomponents.

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5.11 These conclusions are supported by data on the second criterion,overall ratings of implementation performance for components indifferent modes. Tables 29 and 30 present the data by income level andby region.

Table 29: Average Component Performance*, 1963-82By Wade and Income Level, ComPleted Projects

VETInome Post- Teacher OVERALLLevel Secondary Nonformal Secondary Training AVERAGES

Low 2.0 1.5 2.0 1.3 1.7

Low-Mid 2.2 2.2 2.2 2.5 2.2

Upper-Mid 2.6 2.7 2.3 2.5 2.5

(WIthout (2.8) (3.0) (2.8) (4.0) (2.9)Algeria)

Welghted 2.3 2.2 2.2 2.0 2.2Averages

(2.3) (2.3) (2.5) (2.2) (2.3)

*Scale: 1 -Poor; 2 - Fair; 3- Good; 4 . Excellent

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Table 30: Average Component Performance*, 1983-82By Mode and Region, Completed Projects

VETPost- Teacher OVERALL

Region Secondary Nonformal Secondary Tralning AVERAGES

Africa 1.7 1.8 2.0 1.3 1.6

Asla 2.9 2.5 2.6 3.0 2.7

EMENA 2.2 2.0 2.1 2.0 2.1

(Without (2.5) (2.3) (2.5) (3.0) (2.5)Algerla)

LAC 3.0 2.5 2.0 0.0 2.6

Weighted 2.3 2.2 2.2 2.0 2.2Averages

(2.3) (2.3) (2.5) (2.2) (2.3)

*Scale: 1 - Poor; 2 - Fair; 3 - Good; 4 - Excellent

5.12 The data indicate that, on implementation criteria, any modeof training can be established in middle income countries. Conversely,components supporting all modes have lieen less successful in low incomecountries. The direct relationship between level of income andcomponent implementation performance as e- ablished by enrollmentratios is confirmed by these ratings, especially when the very lowperformance ratings for six Algeria components are removed. Overall,performance was rated the same for the four modes, with teachertraining lagging and post-secondary leading slightly.

5.13 The data further confirm the comparative difficulty that hasbeen encountered in establishing VET institutions in any mode inAfrica.

5.14 Performance has varied only marginally over time.Comparison of the scores for two time periods (FY63-75 and FY76-82)reveals some improvement in low income and upper-middle incomecountries, and in EMENA. Declines of similar size occurred inlower-middle income countries and in the remaining three regions.

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FACTORS IN SUCCESSFUL SYSTEMS EVOLUTION

5.15 Given these data on performance, one would expect tofind case examples of effectiv- VET systems among the middle incomecountries. In our review of VET investments in twenty-two middleincome countries three stood out for the development of effectiveindustrial training systems: Brazil, Jordan and Korea. These systemsinclude formal secondary and post-secondary institutions as well asnonformal systems. The latter combine classroom instruction withformal apprenticeships, and are managed by SENAI (the National Servicefor Industrial Apprenticeship) in Brazil, the Vocational TrainingCorporation of Jordan, and the National Vocational Training ManagementAgency in Korea. In most simple terms, each system is built on acombination of formal vocational education and nonformal training.

5.16 In each of these courtries the formal and nonformal trailt,ngsystems that evolved can be considered productive on a number ofcounts. 1/ Job placement after graduation is high. Internalefficiency, as measured by drop out, repetition and graduation rates isalso high by comparison with other countries. Employers reportsatisfaction with graduates. Private and social rates of return toinvestments in nonformal training in Brazil range from 10% to 120%(Kugler and Reyes, 1978). In Korea, scores on national skills testsfor graduates of three year vocational secondary school programs and ofone year vocational training center programs are identical; estimatesof social rates of return favor the vocational training institutesslightly, and are equal to or exceed social rates of return to generalsecondary education (paragraph 5.04). Employment rates are high, withthe secondary schools providing a larger share of industrial workersthan vocational training institutes (Lee, 1985).

5.17 Importantly, the systems have demonstrated considerablecapacity to evolve to meet changing economic and social conditions.Evaluation reports, and interviews with professionals knowledgeableabout these oystems, describe them as effective and dynamic.

1/ There is little irformation about the equity effects of thesesystems in our review. Thus this crucially important issue will not beaddressed here.

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5.18 This is not to say that these systems have solved allproblems, or are perfectly productive, but rather that they appear tobe examples of "good practice" in developing countries. Thus theymerit examination in terms of the common characteristic, which appearto have contributed to current success. Nine of these emerge from ourreview.

(a) Long Time Perspective With Multiple Investments: In aextensive review of the literature, Dougherty (1988, forthcoming)notes the long maturation period required for effective trainingsystems. In Jordan, this has taken 15 years with 5 projectinvestments (and is still ongoing); in Korea it took 5 projectsover 18 years; in Brazil 3 projects over 16 years.

During these periods investments were made in all modes,providing a broad context in which the system could evolve.Sector work contributed to the investment strategies.Importantly, sustained commitment to systems development over along period permitted learning and adjustment in the process ofdeveloping institutional capacity.

(b) ExpandinR Industrial Employment: Although the circumstancesvaried, all three countries exhibited strong demand for skilledworkers in the industrial sector during the period. While Koreaand, most notably, Brazil suffered recessions, jobs for graduatescontinued to be available. In Jordan, first the exodus and thenthe return of skilled labor from foreign employment caused labormarket imbalances to which both the training and employmentsystems had to adjust. Despite these difficulties, employmentprospects for Trades Training Center (TTC) graduates remainedstrong.

Hence the training institutions in these countries couldcount on strong feedback from employers seeking workers, andincreasingly strong and sophisticateu: employer participation indecisions on training curricula and enrollments.

(c) Small Formal Beginnings. Incremental Expansion: The firstprojects in #hese countries were relatively small and simple, andemphasized formal vocational education institutions. In Jordan,investments began with a combined polytechnic/trades trainingcenter, turned toward support of various secondary andpost-secondary institutions, and took up the nonformal system inlater projects. Korea began with extensions and rehabilitationfor nine existing secondary vocational schools and four juniorcolleges. World Bank support for the development of the networkof nonformal centers began six years later. Brazil began withsecondary and post-secondary institutions, moving to support forSENAI five years later (although SENAI had been in existence formore than thirty years).

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In all countries the formal systems have been relativelysuccessful as well, and, as will be discussed below, becameincreasingly differentiated in function and governance from thenonformal system.

In the middle and later stages of systems development allthree countries invested in larger numbers of institutions, moremodes, and the development of policy and management capacity.

In sum, the record suggests that by beginning with relativelysmall investments in formal institutions, and gradually increasingthe complexity of development in terms of the variety of modes.As policy, planning and management capacity developed, thesecountries were able to build incrementally from experience.

(d) Responsive Planning: In general, these systems were plannedin response to -- not in anticipation of -- employment demand. Inearly stages, manpower data and manpower forecasting capacity werelargely absent. Investments were justified on the basis ofdemonstrated industrial expansion. The development of stronginstitutional linkages between training and employment tofacilitate incremental and localized planning and adjustment were,in retrospect, important alternatives to formalized manpowerforecasting. In this context, the location of traininginstitutions became an important variable. In Korea sites werechosen to be close to expanding enterprises; in Brazil, mobiletraining units were created to take training to the trainees.

(e) Early and Sustained Involvement of Enterprises: In all threecountries sustained efforts were made to establish linkagesbetween training and employment for all modes (in Brazil, theselinkages had been part of the SENAI tradition since the 1940s).Enterprises played active roles in curriculum and enrollmentdecisions and in the design and provision of on-the-job trainingexperience and apprenticeships. What may be most important is theconsistency of commitment in training agencies to the importanceof these linkages. Combined with expanding employment andincreasingly effective enterprise management, this helped create asupportive "ethos" in which the needs of employers were takenseriously and reflected in training plans and curricula.

In later stages, the nonformal systems began to branch out toprovide a range of training services to enterprises. In Jordan,this has taken the form of training centers established with theassistance of the Vocational Training Corporation in largeenterprises, and in assisting groups of small enterprises tojointly sponsor apprentices for VTC training. In Korea and Brazilthe nonformal training agencies have as a matter of policy soughtto help enterprises develop their own training capacity.

(f) Evolution of Policy and Management Capacity to Match SystemComplexity: Each country began with relatively strong managementcapacity in Ministries of Education, but relatively undeveloped

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policy bases for VET. As the systems expanded, quasi-autonomousnational nonformal training agencies were created to manage jobtraining, with formal vocational e'ducation left with Ministries ofEducation. Policies in the form of legislation (Korea, Brazil) ordevelopment plans (Jordan) came in the middle stages ofdevelopment, thus benefitting from accumulated experience.

National testing and certification systems received attentionearly in the investment program. These were important inproviding feedback to policy makers and managers on the quality oftraining. In Korea they enabled the government to implementincentive schemes to attract good students to vocational tracks,most notably exemption from military service for graduates ofvocational schools and training centers who scored above acriterion on the skill examination.

Finally, all systems were characterized by gradualdecentralization of authority for curriculum decisions and revenuegeneration to training institutions. In Brazil, SENAI wasdecentralized to the State level. In Korea, the vocationaltraining centers (VTCs) were planned to become quasi-autonomouspublic corporations, with governing boards that includedemployers, with a base of governiment funding and a mandate toraise and use additional revenues from the sale of trainingservices. The extent to which this reform was implemented is asyet unclear.

(h) Increasing Attention .o Alternative Financing Sources: Inall countries sources of financing other than governmentappropriations from general tax revenues were developed as thesystems evolved. In Brazil payroll taxes were introduced as amajor source of financing for vocational training; both Korea andBrazil experimented with financial incentives to encourageenterprise provision of training. In Korea, in addition, studenttuition was charged (accompanied by a scholarship program fordisadvantaged students); user fees are also charged in Jordan.Jordan also uses earmarked municipal taxes to provideextra-budgetary support for both general and vocational education,with municipal control of allocations.

These innovations diversified and, in some measure,stabilized the resources available to the training system.

Mi) Investment in Quality: The development of testing andcertification systems, and of strong linkages between training andemployment, contributed substantially to the ability of all modesto improve the quality and relevance of teaching and learning.

In addition, each country created incentives designed toattract and retain good quality instructors, most notably for thenonformal institutions. In Korea these included scholarships forteacher training with bonded periods of service, free housing andexemption from military service. Jordan provided scholarships

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(with bonded service) and salary incentives. In Brazil,scholarships were provided, along with salaries set to becompetitive with private industry. While these measures did notentirely prevent loss of technical teachers to enterprises, theydid enable each country to be comparatively successful inovercoming a barrier to quality endemic in other developingcountry contexts.

Similar incentives were offered to attract good students,another crucial input to the quality equation. In Korea"flagship" training institutions were created to add furtherstatus to blue collar work.

Although project documentation is silent on the point,systems in all three countries have benefitted from comparativelywell developed general education systems. In all three countriesuniversal primary enrollment has been achieved. The percentagesof the age group in secondary education are 89% for Korea, 78% forJordan and 452 for Brazil. Only in Brazil does the secondaryenrollment ratio fall below the average for the country incomegroup.

All three systems developed permanent curriculum developmentcapacity that was integrated with teacher training and othersupport services. Occupational analysis was the basis forcurriculum development and modification.

(i) Flexibility of Curriculum and Institutional Design: Takentogether, these characteristics led to institutions that were, incomparison with those in many other countries, able to respondwith considerable flexibility to changing economic circumstances.All three countries adjusted to strong social demand for training.Jordan allowed nonformal training centers to evolve towardssecondary school status; Korea rapidly expanded enrollmentsdespite overcrowding; and Brazil created mobile units to taketraining to dispersed populations.

Each also undertook major changes with respect to curricula.Korea converted two junior colleges into "open colleges", withunrestricted enrollment and flexible schedules, to servein-service workers. Conscious efforts were made to adjusttraining curricula to charges in the technology of production,with significant employer participation. Jordan adjusted thesystem to deal with fluctuations in external labor markets, andestablished training centers in enterprises. In Brazil,curriculum development has been decentralized to the State levelto improve the fit with local needs, and considerableexperimentation with the use of educational technology has beenundertaken.

The capacity of the training system to make these adjustmentshas been a major factor distinguishing these three countries frommany others. This capacity, of course, is crucial to

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institutional effectiveness in changing economies. It seemsreasonable to think, moreover, that it has been achieved throughthe combined influence of the other eight characteristics.

5.19 It is important not to over-generalize from this kind ofanalysis. Nevertheless, it does illustrate how these developingcountries have developed training systems which have thecharacteristics necessary to adjust to changing economies.Significantly, these systems involve a variety of training modes,including secondary vocational schools that are often comparativelysuccessful.

5.20 We know very little, of course, about the economiceffectiveness of the different kinds of training institutions in thesesystems, although the Korea data demonstrate at least the possibilityof good external efficiency for secondary vocational schools, and thereis stronger evidence for the external efficiency of nonformal trainingin several regions. Post-secondary institutions have been reported tohave high placement rates for graduates (Malaysia, Korea, Jordan,Algeria). Teacher training institutions have been able to placegradutates in teaching posts where salaries and conditions of work havebeen attractive.

5.21 Secondary vocational schools in middle income countrieshave been more effective than those in low income countries,particularly those in Africa. The explanation lies in the fact thatmany of the effective schools have acquired characteristics -- such aslinkages with enterprises, incentives to attract and retain qualifiedinstructors and students, good 'feedback" systems -- which are mostoften thought characteristic of nonformal modes. They exhibit, inshort, what Dougherty (1988) has identified in his review of theliterature as the "convergence of modes." Thus they may no longer be"public vocational secondary schools" in the stereo-typical sense, butrather be evolving towards a new institutional form. Furtherinvestigation into this hypothesis, of course, is needed --particularly to see the extent to which these institutions have beenfreed of the more constricting features of traditional secondaryeducation.

C.onstraints on Effective Systems Evolution

5.22 In implementation terms, at least, investments in thedevelopment of national training systems in middle income countrieshave been successful. In contrast, less success has been found inthe sample of components in low income countries, especially in Africa.These have been small investments, typically supporting a fewvocational training institutions; most of these have been secondaryvocational schools.

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5.23 Implementation performance has been weak. Long delays incivil works and procurement prevented institutions from operating for asufficient period prior to completion to permit assessments ofeducational outcomes (Gambia, Cameroon, Ivory Coast). Weak financingled to cancellation or the reduction in size of project institutions(Zaire, Ivory Coast, Gabon). High recurrent costs and constrainedgovernment budgets had significant negative impact on utilization andmaintenance (Ivory Coast, Chad, Senegal, Guinea).

5.24 The nine characteristics of the more effective investmentprograms in middle income countries provide a useful framework forassessing these less successful projects.

(a) Long Time Perspective With Multiple Investments: With theexceptions of the Ethiopia, Ivory Coast, Cameroon, Senegal andKenya, this perspective has been lacking. Single small projects,often unsupported by sector work and lacking investment ininstitutional capacity have not been effective.

(b) Expanding Industrial Employment: Small modern sectors, andstagnating employment markets, have characterized these countries.Larger investments have not been justifiable on the basis ofemployment demand. Weak economies face constrained investmentchoices, making longer-term programs difficult to rationalize, andexisting institutions -- especially small and inefficient oneswith high recurrent costs -- difficult to support. Whereenterprises are small, and management weak, it has been difficultto generate effective participation by employers in training, andmore difficult yet to establish training in enterprises.

(c) Small Formal Bezinninzs. Incremental Expansion: Thebeginnings were made in many countries, but expansion has followedin only a few. Investing first in the development of vocationalsecondary schools made sense in many countries. Overalladministrative capacity was weak. Secondary schools were a knownphenomenon, and could be managed by the Ministry of Education,which at least had some experienced in delivering educationser-ices. Lack of a longer-term perspective, weak employmentdemand and financial constraints, however, have prevented thetraining capacity of these countries from evolving further.

(d) Responsive Planning: This has not developed. Manpowerrequirements forecasts have been the basis for investment, butgiven economic stagnation have been largely inaccurate.Vocational schools administered by Ministries of Education havenot acquired the flexibility necessary to adjust quickly tochanging training demand. Constrained by long programs (three tofive years), an obligation to deliver significant levels ofgeneral education, and inadequate recurrent financing, these

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institutions have not proven flexible. Although some nonformalcenters made progress in this regard (Senegal), lack of sustainedinvestment in institutional capacity has weakened the ability ofinstitutions to adjust quickly.

(e) Early and Sustained Involvement of Enterprises: All projectssought to create linkages between employers and traininginstitutions. In the low income countries, however, linkages werefewer and more difficult to establish. For the secondary schools,in particular, linkage development was problematic. And in manycountries there was no follow-on investment to provide sustainingsupport for linkage creation.

(f) Evolution of Policy and Management Capacity: This hasoccurred in Ethiopia, and may be underway in Cameroon, IvoryCoast, Kenya and Senegal. However, in general, management andpolicy development has been weak.

(g) Increasing Attention to Alternative Financing Sources:Again, this may be developing in the countries that have continuedto invest in their training systems. Efforts to establish payrolltax levies have been delayed by lack of a longer-term perspectiveand political differences as to whether training ought to be madeseparate from the formal education system.

(h) Investment in Quality: Investment in institutional capacityfor quality improvement has tended to be weak. Curriculumdevelopment capacity has not been established; testing andcertification systems are largely lacking. Salaries andincentives needed to attract and retain indigenous teachers havenot been put in place, with consequent continuing reliance onexpatriates despite significant efforts in teacher training.Demand for places in vocational institutions has been uneven, asstudents and parents perceive greater opportunities through highereducation, raising problems of student quality and motivation.

(i) Flexibility of Curriculum and Institutional Design: The neteffect of the economic context for these investments, the lack oflong-term perspective and institution-building, and low levels ofinvestment in quality has been, in many countries, vocationaltraining institution; that have lacked the flexibility necessaryto adapt to changing economic circumstances. Many of theseinstitutions are inefficient, with high costs and low utilizationrates. While economic evidence on external efficiency is weak,the available information suggests that it is most often low.

5.25 This is a gloomy asser-iment. And indeed these problems haveapparently been recognized by the Bank, and many governments. Withinthe sample, only one investment of this type has been made in Africaafter FY79 (Burundi II, FY80). Of the projects in the eight countriesbeyond the sample with VET investments since 1980, six invested only in

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nonformal training. 1/ One invested both in nonformal andpost-secondary training (Sudan III). Only one investment in secondaryvocational schools was made (Rwanda III); that project also includes anonformal component. These are mostly small components: only threeexceed US $5 million.

5.26 Since this watershed in time, investments in vocationalsecondary schools have given way to nonformal modes. The componentsremain small, however.

5.27 Three of the five components in the sample address financingconstraints (Senegal, Cameroon, Ivory Coast). All of thesewere preceded by sector analysis.

5.28 Hence there is evidence that some of these countries may bemoving along the general line of development that has been followed inmiddle income countries. However, the continuing economic crisis inthe region will continue to be a factor, both in employment demand andin financial support for training. It is not clear that the crucialpolicy issues -- clear separation of vocational training fromvocational education, responsive planning and institutional quality,enterprise linkages, stable financing for nonformal training -- arebeing successfully addressed.

5.29 Nevertheless, these investments provide some encouragementfor a limited number of countries. Remaining is a crucial investmentquestion. How can the training needs of small countries, with limitedmodern sector employment demand, increasing recognition of theimportance of informal sector employment, and severe financialconstraints establish cost-effective skills training capacity? Thisquestion will be addressed, though not completely answered, in the nextand final chapter.

SUMMARY

5.30 The performance of vocational education and training should.ideally be evaluated against the ultimate objective of economicefficiency. Economic evaluation of Bank investments, however, islimited by the lack of indicators of investment effectiveness in Bankproject completion reports. These reports are often written just asdisbursements are completed, before any outcomes can be reported. Dataon placement, employer satisfaction and graduation rates are availableonly to a significant degree in the Asia region; these indicate thesuccess of these projects.

1/ Botswana, Lesotho, Burkina Fasso, Guinea, Liberia, and Mauritania.

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5.31 Another basic objective against which these investments maybe evaluated is the successful establishment of a training institutionas measured by two implementation criteria. The first criterion is thepercent of projects meeting their target enrollments by projectcompletion; the second is the overall ratings of implementationperformance for components. The data indicate that any mode oftraining can be established in middle income countries; conversely,components supporting all modes have been less successful in low incomecountries.

5.30 Succesful VET systems in middle income countries have incommon nine characteristics:

(a) A long-term investment program spanning several projects;

(b) Expanding industrial employment;

(c) Initially small projects, followed by increasingly complexinvestments that support a variety of modes supported and buildmanagement and policy bases;

(d) Planning that responds to, rather than anticipates,employment demand;

(e) Early and sustained involvement of enterprises;

(f) Evolution of policy and management capacity to supportincreasing system complexity;

(g) Increasing attention to developing alternative financingsources;

(h) A focus on quality development through introduction oftesting and certification systems, strong linkages betweentraining and employment, and curriculum development capacityintegrated with teacher training, all designed to improve thequality and relevance of teaching and learning, as well asincentives designed to attract good quality instructors andstudents.

(i) As a result of all these factors, trainigninstitutions ableto respond flexibly to changing economic circumstances.

5.32 A further characteristic of successful systems evolution maybe the "convergence of modes" as vocational secondary schools take onsome of the characteristics of nonformal institutions, such as linkageswith enterprises, incentives to attract and retain qualifiedinstructors and students, and responsive planning.

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5.33 In contrast, the implementation of components in low incomecountries, particularly in Africa, has been less successful.Characteristics common to these less successful projects include:

(a) A focus on single small projects, often unsupported byadequate sector work and lacking investment in institutionalcapacity;

(b) A small modern sector and stagnating employment market;

(c) Limited expansion of training capacity due to weak employmentdemand, financial constraints and weak implementation capacity;

(d) Planning based largely on inaccurate manpower forecasts;

(e) Fewer linkages with enterprises;

(f) Weak management and policy development;

(g) Less success in developing alternative financing sources;

(h) Little investment in quality improvement;

(i) In consequence, institutions that are relatively inflexiblein the face of changing economic circumstances.

5.34 There is evidence that some of the low income countriesmay now be moving along the general line of development that has beenfollowed in middle income countries. However, furtherdevelopment may be constrained by the continuing economic crisis, whichwill negatively affect both employment demand and financial support fortraining.

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VI. Lessons for Future Investment

6.01 The principal lesson to be drawn from the analysis is thateconomic circumstances have great impact on the success of VETinvestments. It follows that the investment designs and institutionalmodels employed in lending should vary with economic circumstances. Inmiddle income countries, continuing support to enhance the quality andefficiency of the national training systems established over the pastd cade will be required. In the small, poor countries of Sub-SaharanAfrica simpler models, based on nonformal delivery modes, should haveprio'rity. In tlis latter circumstance, sustained investment over timein institutional capacity, perhaps supported by sub-regionalprofessional institutions, will be required. The record suggests thatthe Bank has an opportunity to improve the quality of lending for VETsignificantly, if sufficient policy and operational support can beprovided.

INTRODUCTION

6.02 Although based on a large and representative sample of VETcomponents, the foregoing analysis has a number of limitations. Theanalysis of broad lending trends is comprehensive, and its conclusionsregarding shifts in emphasis within VET towards nonformal trainingmodes and training for industry, and away from secondary vocationalschools and training for agriculture, can be taken as conclusive.

6.03 The analyses based on the sample of components can beaccepted as valid for the general patterns identified. However, somedetail is inevitably lost in sampling. The components not chosen maycontain significant innovations, or b_ otherwise of interest.

6.04 Finally, the large sample compensates to some extent foruneven treatment of investments in Staff Appraisal and ProjectCompletion Reports. Nevertheless, the data are limited in manyrespects, notably in regard to the educational and economic outcomes oftraining.

6.05 Despite these caveats, lessons can be drawn that suggestdirections for future investment in vocational education and training.Clearly, these cannot be taken as rigid prescriptions for investmentdesign. Adjustments, sometimes significant ones, will inevitably berequired in individual country circumstances.

6.06 The lessons, moreover, relate primarily to the design of VETsystems and investments; the scope ar_ data of the study permit onlythe most rudimentary conclusions regarding the econov'z justification

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of investment. Thus the lessons assume prior economic justification,though they do raise issues regarding the nature of such justificationsunder different economic conditions.

6.07 This concluding discussion of the implications of the reviewfor future investments is structured in four parts. First, the impactof the economic context of VET investments is summarized. Thisprovides background for an analysis of the comparative effectiveness ofalternative training modes that follows. The third section addressesthe implications of the review for investment design in differenteconomic contexts. A final section identifies implications for WorldBank operations.

THE ECONOMIC CONTEXT OF VET INVESTMENTS

6.08 Among the clearest findings from World Bank experience invocationally-specific education and training is the differentialpattern of evolution, and of effectiveness, of VET in economies atdifferent levels of development. Quasi-autonomous national trainingsystems, sharply differentiated from formal vocational education, havebeen developed with comparative success in middle income countries.;hese include sector-specific "free-standing training' systems. Thislesson has been learned and applied in the design of Bank-assistedinvestment programs in these countries.

6.09 The general characteristics of this model have been discussedin some detail (paragraphs 5.16). The key elements arequasi-autonomous training agencies, decentralization, responsiveplanning, nonformal delivery, strong linkages to enterprises, permanentcurriculum development and staff training capacity, the ability tooffer attractive incentives to teachers, testing and certificationcapacity, and alternatives to government financing that involve, in oneway or another, contributions from enterprises. Many of these trainingsystems are paralleled by effective post-secondary institutions fortechnician edacation and training, also strongly linked with industry.This complex institutional model demands strong management, and hasrequired sustained investment in institutional capacity.

6.10 In contrast, VET systems have been much more difficult toestablish in low-income countries, especially those in Sub-SaharanAfrica. It has been possible to establish all modes of training inmiddle income countries; and equally difficult to do so for any mode inthe poorer uations. In a relatively few countries in Sub-SaharanAfrica Bank-assisted investuents are seeking to develop trainingsystems generally along the lines suggested by experience inmiddl.e-income countries. The success of these in-zestments is not yetknown; the probability of effectiveness is clouded by economicconstraints. The more widespread turn towards the establishment ofnonformal training centers in Sub-Saharan Africa is encouraging giventhe demonstrated greater potential of such institutions to respondflexibly to changing demands. But it is not clear that theseinvestments benefit from the sectoral analysis that appears essential

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to the development of strong policy frameworks and investment programs.Given the weak implementation performance of past nonformal components,encouragement must be tempered with concern for implementation issues,notably the development of planning and management capacity.

6.11 The reasons for the differences across levels of economy arestraightfotward, and fall ox., both the demand and supply sides of skilldevelopment. In stronger economies, demand for skilled workersand technicians leads to stronger enterprise participation in thetraining effort. Direct and indirect enterprise financing is morepossible. Enterprise managers are more willing and more able toprovide the information necessary for flexible and efficient training,and to cooperate with training institutions in the development of arange of productivity enhancement services, including enterprisetraining capacitv. The relatively large size of employment demandincreases job opportunities and hence the external efficiency of VETinstitutions. This is further increased as training institutionsdevote a greater share of their resources to in-service training. Thepositive feedback of success further enhances the confidence ofemployers in training, and of training institutions in developingflexible, demand-driven training services.

6.12 The effectiveness of vocational training in strongereconomies is also supported by stronger systems of general education.Trainability is higher. The perceived need to combine general andvocational education is consequently less, and secondary diversifiedand vocational schools consequently less attractive.

6.13 Stronger economies have stronger project implementation andsystems development capacity. This appears to be unusually importantto the development of VET systems, more so perhaps than for generaleducation. Establishing a flexible and responsive vocational trainingsystem is a most complex institutional development task. Unlikegeneral education, where what to teach and to whom can be taken forgranted for relatively long periods of time, effective vocationaltraining requires constant adjustment to meet the changing needs ofindustry. This characteristic is of crucial importance underconditions of economic instability, whether caused by rapid growth orby economic stagnation. Planning, management and coordinationrequirements are consequently very high. And the demands on managementfor effIcient mobilization and use of costly resources (higher-pricedinstructors, expensive equipment and facilities) are equally great.

THE EFFECTlVENESS OF ALTERNATIVE TRAINING MODES

6.14 Experier-e indicates that, in middle income countries,investments in nonformal training institutions, especially when part ofnational systems, have been effective, as have investments inpost-secorndary institutions. Secondary vocational schools in thesecountries have worked well when linked closely to enterprises, and whensalaries and incentives have been sufficient to attract qualified

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instructors. Teacher training investments have also performed wellwhere such incentives were in place. In contrast, it has beendifficult to establish any mode of training in low income countries.

6.15 Strong employment demand, relatively well developedenterprises and goo4 implementation capacity are conditions foreffectiveness. The complex nature of vocational education andtraining delivery, and design differences of alternative modes,however, also play a part.

6.16 VET differs significantly from general education. In generaleducation, efficiency can be achieved through stability, marked only bythe continuous need to improve quality, and the long slow swing ofeducational reform. This leads inevitably to the "educationperspective," with hierarchical advancement of students through rigid,time-bound curricula towards the highest level of education they canattain, and that they or their country can afford. Goals are takenfrom society at large, and the perspective of pl iners and managers isgenerally inward toward their system.

6.17 Cost-effective VET requires a "training perspective," inwhich goals are derived from the shifting realities of-the economy andlabor markets. The perspective must be towards the externalenvironment. Efficiency comes not through stability, but throughcontinuous change. Effectiveness increases as institutions gain thecapability to provide a range of training and productivity services:in-service training, consulting, the development of enterprise trainingcapacity.

Secondary Vocational Schools

6.18 Many of the difficulties encountered in establishirgeffective vocational secondary schools in low income countries flowdirectly from the failure to establish a "training" model in aneducation setting, under conditions of generally weak implementationcapacity, small enterprises with weak management, and relatively smallmodern sector employment markets.

6.19 In stronger economies, secondary vocational schools canacquire enough of the training perspective to operate more or lessflexibly. Linkages with employers can be established, resources madeavailable to attract qualified instructors, and the management strengthflexibility requires can be put in place. These institutions arebetter able, for example, to provide evening in-service courses forworkers. When effective, these schools thus appear to have acquiredmany of the characteristics of nonformal conters while retaining ageneral education function. In this respect, they may to some extentresemble the highly evolved and effective area vocational centers inthe United States, which combine pre-service training for youth,in-service upgrading and re-training for adult workers, andproductivity services to local enterprises.

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6.20 But it is not clear that such schools are the mostcost-effective way to meet skill training needs in developingcountries. More focused and less costly training after secondaryschool, or as an alternative, would appear to be a better model in manycases. This issue is only partly addressed whetn the responsibility forvocational education and for vocational training are clearlydifferentiated. Additional thinking about the most appropriate rolefor secondary education vis a vis employment is urgently needed.Costly diversified high schools have largely been abandoned as astrategy because labor markzet outcomes have generally not justified theincreased cost. At the same time, lower cost secondary curricula thatdo a better job of preparing students for further training are needed.

Nonformal Training Centers

6.21 Nonformal training centers are designed for a trainingperspective. The evidence clearly indicates that these have beenintended to address a broader range of objectives, with relatively highemphasis on upgrading worker skills. They have been more effective inestablishing linkages with employers, especially in the areas offinancing and labor market information. In the sample, only nonformalinstitutions developed training services for enterprises. By design,these are inherently better able to offer short courses based onoccupational analysis, and to use part-time instructors from industry.If well managed, they have the demonstrated capacity for flexibleresponse to changing labor markets.

6.22 Such centers have been established in middle incomecountries. In the low income countries, the evidence on enrollmentattainment at completion and on component institutional performanceindicates that they have been beset with the same implementationproblems as vocational secondary schools. Indeed, the evidencesuggests that secondary schools are somewhat easier to put in placethan nonformal centers in such circumstances. This is seen in lessvariation in unit costs per place established across regions, and inslightly higher performance on implementation indicators. In lowincome countries, the potential for greater effectiveness of nonformaltraining has, so far, been confounded by the management challenges of anew and more complex institutional design. The relativecost-effectiveness of vocational secondary schools and nonformaltraining institutions in middle income countries in pre-employmenttraining cannot be judged from World Bank project experience. Theavailable data from Korea demonstrates that these modes can be equallycost-effective, but the Korean context is unique in the strength of thebasic education system and the rapid growth of the industrial sector.

6.23 The costs of establishing nonformal training places havebeen about twice those of secondary places in low income countries.In lower-middle income countrie- secondary places have cost somewhatmore. In upper-middle income countries nonformal places have costnearly seven times those in secondary vocational schools. Nonformalplaces, of course, are used more frequently in a given time period thanthose in secondary schools. While data on the outputs of these systems

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is uneven, the cost ratios alone suggest that output costs fornonformal centers should be lower in lawer-middle income countries, andpossibly so in low income countries -- assuming that institutions ofboth type operate at capacity.

Post-secondary Institutions

6.24 Post-secondary institutions have received greater emphasis inmiddle income countries, where demand for technicians is presumablyhigher. The implementetion performance of these components has beenthe best, overall, among the four modes studied (excluding Algeriaprojects). Enrollment performance has been good, and where data areavailable employment prospects have been good as well. Importantly,these institutions have been well-linked with enterprises, with evenmore use of on-the-job training and instructors from industry thannonformal institutions. The relatively standard design of theseinstitutions, and the fact that many have been located on the campusesof existing universities, have no doubt contributed to implementationeffectiveness. The unit investment costs per place have been generallyhigh in comparison with secondary and nonformal components, and haveincreased with the income level of the country, reflecting highconstruction and equipment costs.

Vocational Teacher Training

6.25 Teacher training components have performed relatively well.Enrollment performance has been respectable, and very good in Africa.Implementation ratings are above average in middle income countries,though below average in low income countries. Among the completedcomponents, those in Indonesia and Korea were particularly effective.Unit investment costs in Asia, EMENA and LAC, while high, werecomparable to costs for post-secondary institutions or, in the case ofLAC, nonformal institutions. The unit investment costs in Africa,however, were very high, in part due to the small size of institutions.

6.26 Investment in teacher training components has been relativelylow in the past, with recent increases -- notably in Sub-SaharanAfrica. This has been compensated for, to some excent, by widespreadincorporation of in-service training, fellowship training, andexpatriate teachers. The strategies have generally been adequateoutside of Africa.

6.27 Key to effective staffing have been salaries and incentivesthat attract qualified individuals to vocational teaching and training.Where these are not in place, training efforts alone have beeninadequate to the task.

IMPLICATIONS FOR INVESTMENT DESIGN

6.28 The review suggests three broad contexts for futureinvestment in VET. One is comprised of middle income countries wherenational training systems have been established. A second is middle

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income countries and a few large low income countries where this is yetto be achieved. The third is comprised of low income countries,especially those in Sub-Saharan Africa, where effective vocationaleducation and training have yet to be firmly established.

6.29 In all contexts, Dougherty's conclusion that the challenge isto improve and adjust existing systems, rather than to start over withsome new model, should be borne in mind (1988, forthcoming).Adjustments will come through policy and institutional change, andthese should continue to be clearly addressed in Ba&fk operation-.

Middle Income Countries: Escablished Systems

6.29 Those countries with establinhed institutional frameworksconfront five inter-related tasks: a) rehabilitation and re-equippingof older training institutions; b) continuing efforts to improvetraining quality; c) improving efficiency; d) reducing reliance ongovernment financing subsidies; and e) adapting successfully to newtraining roles as the nature of technology in industry changes and asemployment expansion strategies focus on small enterprises and informalsector employment.

6.30 Rehabilitations The trend in recent it.vestments hasbeen towards rehabilitation and new equipment for existing traininginstitutions, and technical assistance support of institutionaldevelopment. This trend is likely to continue, with relatively littlenew construction. Because national systems are in varying stages ofcompletion, and because of expanding populations, some additional newconstruction will be required. Continuing growth in the industrialsector may expand the need for technician education, with consequentneed for investment in new or expanded post-secondary institutions.

6.31 Improving Quality: In many countries the elements necessaryfor continuing quality improvement are in place for both nationaltraining systems and polytechnics: institutionalized testing andcurriculum development; staff training capacity, and the ability to payattractive wages to instructors; strong basic education systems. Theseelements must be maintained and strengthened. Where they are not yetdeveloped, investments should be made.

6.32 It is important to note that it is the combination of thesefactors that leads to quality. Investments should thus seek to supportbalanced and integrated development of these capacities.

6.33 Testing and certification systems are central to monitoringthe performance of training, and contribute substantially to labormobility. Measures of performance are essential to managementeffectiveness as well as to policy changes. The capacity for testdevelopment and administration, as well as re-development asoccupational requirements change, is a key element in both internal andexternal efficiency of training.

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6.34 The development of training curricula from occupation and jobanalysis is characteristic of many effective systems, especially thenonformal componenti. This is the standard approach in most of thedeveloped world. It provides a strong basis for collaboration betweenemployers and training institutions and can contribute to efficiency byfocus training on essential knowledge and skills, thus reducingtraining time. It also provides a framework for continuingmodification of curricula and occupational testing as jobs change.

6.35 Adequate and qualified inrtrtuc-ional staff are also crucialto training quality and effectiveness. It is quite clear that adequatesalaries and incentives must accompany teacher and instructor training.This will inevitably raise the cost of vocational training incomparison with general education absent compensating mechanisms.

6.36 One of these is the use of part-time instructors recruitedfrom industry. This has been shown to lower costs in Uruguay andHexico. This strategy obviously depends on the presence of sufficientnumbers of such persons in the locality of the training institution;this is one of several factors (including in addition the developmentof linkages between training and enterprises) that make the location oftraining institutions important in planning. The Mexican experiencefurther demonstrates that heavy reliance on part-time staffing requiresconsiderable flexibility in course scheduling, as well as continuingrecruitment and vraining. Nonformal training institutions, in areas ofrelatively high industrial density, are most likely to be able to relyon this strategy. In larger countries, this further supportsdecentralization of staffing decisions and training capacity.

6.37 Curricula based on occupational analysis, by reducingtraining time, can also reduce staffing requirements.

6.38 Yet to be explored is the potential of variousinstructional technologies to offset trainer costs. The capability ofa variety of technologies (video disk, micro-computers, videocassettes) to handle defined instructional tasks has been demonstratedin developed countries. The implementation and cost parameters as theyapply in developed countries, however, are yet to be determinedsystematically.

6.39 Student quality is a crucial input to good training. Generaleducation in many middle income countries can provide an adequate poolof qualified applicants. Where this is not the case, carefulconsideration must be given to the size and design of training systems.Under-utilized capacity, in either a physical or instructional sense,should be avoided.

6.40 The evidence suggests that incentive programs can increasethe quality of students. These need not always be financial as theKorean experience demonstrates. Marketing of VET through demandgeneration activities merits further exploration. Labor marketrealities, however, *.ill undoubtedly continue to dominate theperceptions and expectations of parents and students with respect to

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pre-employment training. If there are few Jobs, or if wages are notattractive, VET below the post-secondary level will continue to beseen as a second-best option, with limited career prospects.

6.41 Improving Efficiency: The high costs of VET must be of greatconcern, even where resources for education and training are relativelyabundant. Strategies for cost containment, coupled with increasingquality, are crucial to improved cost-effectiveness.

6.42 The evidence suggests that nonformal institutions, withinherently greater institutional flexibility, are better positioned totake advantage of the cost-containment potential of occupation-basedcurricula and part-time teachers. Flexible scheduling can alsoincrease the utilization rate of facilities.

6.43 The combination of classroom and workshop training withsupervised on-the-job training through apprentineships in industry, inaddition to improving training quality, has the further potentialadvantage of reducing in-center training time and equipment costs. Thismodel has been implemented, in varying degrees, for both nonfr malcenters and polytechnics. This "dual system" rests on very nglinkages between training and enterprises. It further requldevelopment of enterprise capacity to manage their part of thecurriculum, and in-plant supervision from the training institt.,AIn.The management and coordination requirements are high. When coupledwith decentralization, these factors alone argue for significantinvestment in institutional capacity both in training institutions andin enterprises.

6.44 Investment in the human resources management capacities ofthe enterprises served by training has not been part of educationsector lending. In the last analysis, strong management is central toefficiency gains. One of the apparent virtues of vocational secondaryschools not linked to enterprises is much lower requirements forinstltutional management. The weaknesses of pre-employment trainingnot linked to shorter-term employment prospects, however, are great.As national systems have turned increasingly to nonformal training, theneed for the development of training management capacity has grown.The analysis indicates that the Bank and governments have responded tothis need. It is not clear, however, that these investments have givenadequate attention to the human resources management capacity ofenterprises. This is an area where new investment strategies may beneeded.

6.45 Finally, external efficiency depends heavily on the matchbetween the supply of and demand for skills. Global manpowerforecasting has not been an effective planning approach in unstableeconomic conditions, whether caused by rapid growth or stagnation.Decentralized planning in response to shorter-term labor market trendsholds considerable promise. In this respect, the success of nonformaland post-secondary institutions in establishing linkages with employersis encouraging. This will require investment in planning andmanagement capacity at different levels of the system. Crucial in this

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respect will be increased capacity to monitor the labor market outcomesof training through tracer studies, and enterprise and labor marketsurveys.

6.46 Alternative Financing: The Bank's exper'.ence is, of course,restricted to investment in training systeris in which the government isa financial partner. With the exception of the subsidized loan programfor private vocational schools in Korea (paragraph 3.85), all theinstitutions financed were, to some degree or another, directlysubsidized by governments. Thus the possibilities inherent inprivately owned non-profit or profit-making training institutions falloutside the scope of this review.

6.47 In fact, government financing in the establishment ofvocational education end training institutions has been the norm indeveloping countries. The rationale for public financing, whenexplicitly addressed, has generally been couched in terms similar tothose of investments in infant industries. Skilled manpower isnecessary for economic growth; public investment in establishing VETcapacity is therefore justifiable on the grounds of externalitiesbeyond productivity and earnings gains. Much VET, of course, has beendirected towards public sector employment. And in any case, neitherfledgling enterprises nor poor clients have had the means to financetraining.

6.48 Some vocational and diversified secondary school investments,though justified primarily on anticipated employment outcomes, may infact have been rather more intended to have broader social benefits(i.e., broader awareness of technology in society), and thus could bethought to hpve merited public financing on the same basis of generaleducation.

6.49 While direct public subsidy has been justifiable in earlystages of systems development, even :ln middle income countries,increasing attention has been given to alternative financingarrangements. The impetus for such arrangements comes from twosources. The first is economic. To the extent possible, sociallyefficient investment requires that those who benefit pay for servicesreceived. Vocational training and education ostensibly intended toincrease employability and productivity benefit the worker and the firmmost directly. [igh private rates of return to training substantiatethe theoretical basis for this principle.

6.50 The second is institutional. The sustained effort requiredto develop complex VET systems depends heavily on stable financialresources. Uncertain government budgets constrain longer-rangeinstitutional development, and can have devastating effect on recurrentcost budgets -- and thus institutional effectiveness.

6.51 The principal alternative to direct public financing oftraining has been the fixed payroll levy to finance nonformal training.Jbiquitous in Latin America, this model of financing has spread toMENA, and to a lesser extent Africa and Asia.

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6.52 When implemented, payroll taxes have had the virtue ofproviding stable financing for systems development. Indeed, in somecountries (Brazil, Colombia) the size of the financial resourcesmobilized has led to concerns that training may be over-funded to theneglect of other soc'.al services (Ducci, 1987). There is, however,reason to question the general assumption that such taxes representemployer financing for training. Research on payroll levies in generalindicates that these are most often passed on to the worker in the formof reduced wages, or to the consumer in terms of higher prices(Whalley, 1988 forthcoming).

6.53 Direct financing by the beneficiaries of training comes mostclearly through student tuitions and fees, and through direct purchaseof training services by enterprises. Within the sample, student feesprovided significant revenues only in Uruguay; contract training isintended to cover 25% of recurrent costs in Senegal. Other means offinancing (sale of products, in-kind contributions from industry) havenot been significant when measured against the overall costs ofsystems.

6.54 The issues of financing are complex, and largely exceed thescope of this paper. However, experience suggests that payroll taxesprovide at the least a stable source of financing for systemsdevelopment. Contract services appear to have potential where welldeveloped training systems are capable of providing good qualityservices, and where enterprise managers are willing to invest in theirpurchase. Student fees, even in middle income countries, are unlikelyto provide significant revenues; these will be even less if the costsof scholarships intended to increase equity of access are taken intoaccount.

6.55 The logical extension of the economic theory of equitablefinancing would be direct financing and provision of training byenterprises. This approach has been tried in Brazil and Korea. InBrazil, enterprises were given the right to deduct twice the amount ofexpenditure on vocational training from pre-tax profits, up to a fixedlimit. The volume of enterprise-based training increasedsignificantly, but the increase was concentrated in the largerenterprises and the best develJped regions, with negative equityeffects (Ducci, 1987). 1/

1/ In Chile, the national training system was privatized in themid-1970s. All revenue had to come from sale of services toenterprises, which were granted tax deductions. The results weresimilar to those in Brazil (Ducci. 1987).

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6.56 In Korea, a complex incentive policy was put into effect inthe mid-1970s. Firms were required by law to provide in-servicetraiM.ng for a proportion of their work force as determined through aform.la which took into account overall manpower n3eds, employmentvacancies, the level of employment in the occupation and anticipatedeconomic growth. Firms had the choice of conducting this training,with government review of trainine, plans and budgets, or paying a taxfor each worker not trained . ialent to the average training costs inthe industrial sector in tl i:-. ceding year.

6.57 In practice, the system had differential results. Largefirms with high skill requirements provided adequate training. Largefirms with low skill requirements complied with the requirementsuperficially to avoid paying taxes. Small and modium sized firms,with high labor turnover, simply paid the tax (Kimi, 1987)

6.58 Future investments in middle income country VET systemsshould address issues of financing. Payroll tax financing may be animportant long-term transitional arrangement, ensuring adequatefinancing for systems development. Evidence suggests that evolutiontowards incentives to stimulate enterprise provision of training mustbe done cautiously, with attention to likely equity effects.

6.59 New Training Roles: The general trend as national trainingsystems have developed has been towards provision of a wider range oftraining services to employers. In-service training for workersusually comes first, followed by development of enterprise trainingcapability, and management and productivity consulting services. Allof this has the effect of bringing training closer to enterprises.Investment should continue to support this evolution.

6.60 Two additional roles should be considered in furtherinvestment. Explicit policies of technological development arebecoming important in expanding middle income countries, such as Korea,Jordan, Brazil and Turkey. Strong national training systems, alreadyproviding a range of support services to industry, may often be wellpositioned to assist in the process of technology dissemination andinstallation. New production technologies require, in addition to newskills i.n the work force, new production management techniques (such asstatistical quality control) and in some cases marketing assistance forproducts. While technology research and development is most likely toreside in universities, specialized institutions and, in some cases inpolytechnics, technology extension services could well fall within theambit of VET systems. These services could be especially valuable forsmall and medium-sized enterprises.

6.61 The second is in providing training and other supportservices for informal sector employment. The Bank has relativelylittle experience in this endeavor. And it is not entirely clear thatlarge national systems are best suited for this role. However, the

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issue is being addressed in some Latin American countries (Ducci,1987). While this ro.te may not be integrated into the se_;vicesprevided by national systems, it should be addressed in broaderanalysis and planning for training development.

Middle Income Countries In Earlier Stakes of Development

6.62 Experience suggests that these countries, as well as largerlow income countries (such as India and Pakistan), can use theexperiences of countries further along in the development of VETsystems as a guide to i .vestment.

6.03 Given the complexity of the task, and the importance ofemployment demand, strong enterprise management and good implementationcapacity, careful sector analysis will be essential to effectiveinvestment. These analyses should give close attention to the natureof effective employment demand. More reliance should be placed onlabor market surveys, vacancy unemployment rates, and other indicatorsof short term demand, rather than on global manpower forecasting. Thedevelopment of labor market monitoring mechanisms should be of highpriority.

6.64 Management capacity is of crucial importance, and shouldreceive considerable emphasis in sector analysis. This should extendbeyond management in the VET system to include enterprise managementcapacity. The latter is crucially important tc linkage developmentand, over the longer term, to enterprise provision of training.Decentralization policies in larger countries must be based on throughassessment of the needs for management development at lower levels ofthe system.

6.65 In addressing system quality, emphasis should be given to thebalanced development of key elements -- testing, curricula, staffing,and students. Sector analysis should address the extent to wllich theseelements are in place, and are functioning well together.

6.66 On the policy level, a major issue is the structuralseparation of vocational training from vocational education.Implementation of this policy has encountered resistance from theeducation sector in the past, and is likely to continue to do so.Important to the resolution of the issue will be a reconsideration ofthe proper role of secondary education vis a vis employment. While itis the case the secondary vocational schools can be effective when theyacquire characteristics of nonformal training, it is not clear thatthis is a cost-effective way to meet training needs. As noted, newthinking on the best contribution of secondary education to employmentis needed. Ministries of Education may be positive about relinquishingvocational education if the general role of secondary education inpreparation for work can be strengthened at low cost.

6.67 A second important policy issue is financing. Experiencedemonstrates the value of payroll tax levies in providing a stablesource of financing for systems development. While not representing

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enterprise financing for training, such systems at least link financingfor training with the sector it supports. An additional benefit can bestronger linkages between training and employment.

6.68 However, experience demonstrates that enterprise opposition,especially under difficult economic circumstances, can delay if notdefeat implementation of this policy. Other social services may welladvance legitimate claims on resource flows. Payroll taxes, in short,should not be recommended without careful analysis of these factors.

6.69 Direct enterprise financing through contracts fer services isa desirable model. While it is unlikely to cover all costs in mostcases, it can assume a significant share of the revenue burden. Italso provides a clear and direct link between demand and supply.Again, the success in developing contract training requires goodmanagement on both sides, as well as financial regulations which permitgovernment financed institutions to retain and use earned income.

6.70 Student fees can be a third important source of finance.Again, analysis of the ability to pay, and of equity effects, is neededas the basis for policy reform.

6.71 Finally, the record suggests that a decade or more is neededto establish these systems in middle income countries. Depending onthe state of the system, an investment program -- rather than a singleproject -- may be required. Given the very high policy andinstitutional development content likely in these investments (asopposed to civil works), sector lending may be appropriate.

Low Income Countries

6.72 Most of these are small countries in Sub-Saharan Africa.Many have begun to invest in nonformal training; a relative few areclearly embarked on the development of a policy and institutionalframework for training. In almost all countries the conditions foreffective systems development are weak. Modern sector employmentdemand is low, enterprises management is less developed, andimplementation capacity has been weak.

6.73 The early investment emphasis on vocational secondary schoolscan be seen as responding in part to all three conditions. Cautiousexpansion of vocational training within general education offered alower-cost strategy to meet small absolute demand for skills, evenunder optimistic assumptions for economic growth. Moreover, itwould help meet high social demand for secondary education. With fewstrong enterprises with which to establish linkages (or in which toestablish traininig), creating general training capacity to increase thestock of skills available to weak labor markets, based on globalmanpower forecasts, could have been a reasonable approach. Secondaryschools were relatively simple and known institutions, and Ministriesof Education were in place to run them; Ministries of labor werefrequently less vwell-establisheded. Free standing, nonformal training

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systems, in contrast, presented a much more complex institutionalmodel. Small absolute manpower demand indicated smatll institutions,with high unit costs.

6.74 In the event, growth did not materialize; labor mark.t demandstagnrted. Enterprises did not develop as hoped. Under conditionsof economic stagnation, the high costs of vocatioral education andtraining and constrained government budgets led, in some cases, tounderutilized facilities. Inputs necessary for qualitywere delayed or reduced. Implementation capacity did not developstrongly, as evidenced by project performance and the continuingreliance on expatriates. The latter is also in part due todifficulties encountered in providing adequate salaries eor skilledinstrucf-ors. These problems affected both the secondary vocationalschools and the nonformal centers.

6.75 It has been observed that strong general education is t.best preparation for work. Advocates of this position suggest thatvocat'onal training should be left to enterprises and, through privateschools and centers, to the initiative and finances of the individual.This is an appealing concept from the perspective of economic theory.And it may be found in operation in Japan, if not in any otherdeveloped nation. But it has little current relevance in the smallpoor countries, with imperfect labor market information, weakenterprises and capital markets, and poor people. In practical terms,the state must continue to invest in the development of trainingcapacity. All successful systems development in middle incomecountries began with heavy government investment and continues to besubsidized.

6.76 Thus government investment must continue if manpower needsare to be met. At the same time, a new approach to vocational trainingis clearly needed under these circumstances. Equally clearly, it mustbe based on careful sectoral analysis that addresses the essentialconditions for effectiveness.

6.77 The need for a new model is addressed in three parts below.First, directions for future investment design are identified anddiscussed. Second, the issue of the vocational secondary school istreated separately. Finally, the potential contributions ofsub-regional cooperation are assessed.

Directions for Investment DesiRn in Low Income Countries

6.78 It is not clear how quir ̂ y these countries can follow thepath of development that has led L_ effectiveness in middle incomecountries. In the short-term, at least, the conditions for effectivesystem development along that line are unlikely to improvesubstantially.

6.79 However, possible directions for investment design aresuggested by the analysis.

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(a) Focus Investment on Nonformal Training

Responsibility for administration should be separated fromthe Ministry of Education where other agencies have, or can beexpected to develop, management capacity. This has the advantageof investment in a mode of training that, by design, has greaterpotential for labor market linkages, efficiency, and flexibleresponse to small and changing training needs. Locating trainingoutside the Ministry of Education may increase the opportunitiest provide adequate salaries for instructors, at least to theeAtent that they are not paid through the public school teachersalary scale.

The institutions should provide pre-employment trainingfor youth, in-service training for workers, and re-training forunemployed adults. Enterprises can be expected to meet at leastsome of the costs of in-service training.

The curriculum should be built around a core of genericskills useful across sub-sectors of the ec omy. Many of thesehave been taught for years, providing some base of materials andexpertise. Examples include electricity, plumbing, auto anddiesel mechanics, construction. Maintenance training should holda prominent place. As institutional capacity in occupationalanalysis and curriculum development increases, these centers canbegin to offer customized training to meet specific needs forupgrading or re-training, or for immediate employment expansion.

(b) Emphasize Investments in Quality

The complex institutional model of nonformal training, andthe wide range of quality support mechanisms required (testing,curriculum, staff, management, enterprise linkages, systemmonitoring) demand significant investment in buildinginstitutional capacity. As is the case for instructors, salariesfor VET managers and professional support staff must becompetitive if the reliance on expatriates is to be reduced.Project support for salary costs may be necessary.

Support generally for the development of the trainingprofession should be considered. Salary creates status. Beyondthis, support for professional associations and activities wouldbe helpful, and could serve the broader cadre of trainersoparating outside the VET system in government agencies and inthe private sector.

(c) Develop Capacity on Both the Demand and Supply Side

The quality and efficiency potential of nonformal training isrealized through rapid response to changing training needs,curricula that are based on occupational analysis, the combinationof center-based and on-the-job training, and in some cases the useof part-time instructors from enterprises. All of these elemants

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require sustained and effective employer participation in thetraining system. The apparent assumption of past investment --that this participation would develop spontaneously -- has notbeen entirely borne out by experience. A broader view of linkagedevelopment that includes investments in training and incentivesfor enterprise managers is worth consideration.

Enterprise management capacity is crucial to effectiveshort-term planning for the mix and size of courses. Unlessemployers are able to determine and project skill needs with someaccuracy, the labor market informatioin necessary for efficienttraining will not be available.

(d) Concentrate Resources

Especially in the smaller countries, a few largermulti-purpose training institutions located close to enterprisesare likely to be more efficient than i larger number of smaller,more dispersed centers. Decentralization is less of an issue incountries where the ind -trial sector is geographicallyconcentrated. The re_ suggests efficiency gains from locatinginstructor training prog2ams in training center facilities.As capabilities develop. training services can be extended toother areas, init.ally in skill areas with low equipmentrequirements.

(e) Market Training Services and Opportunities

Aggressive action by training managers to market services LO

agencies and enterprises is important to systems development, notin the least through cost-recovery. Equally important ismarketing training opportunities to potential students when jobopportunities are realistic.

(f) Experiment, Learn and Be Patient

Iv seems quite clear that, despite twenty years of investmentexperience, the model for cost-effective vocational training insmall low income countries has not yet been identified. Thedirections for investment suggested here respond to obviousweaknesses in past and current practice. But they do not,together, constitute a complete and coherent model'.

Many issues should be explored. How can training supportinformal sector employment, and small-scale enterprises? Whatrole can NGOs play in providing skills training? Can privatetraining institutions play a useful role? Where largeenterprises exist, especially those with significant foreigninvestment, how can these be involved productively in providingtraining?

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Careful monitoring and evaluation of future investments iscrucial. Past practice in this respect has been entirelyinadequate.

The record also suggests a relatively long period ofsustained investments if effective training institutions are to beestablished. Sustained investment may be more important than thesize of individual loans.

6.80 A number of these directions are being addressed in currentprojects in Sub-Saharan Africa. A focused review of the experience nowbeing gained would be exceptionally useful to future investments.

The Vocational Secondary School

6.81 The recommendation for emphasis on ncnformal trainingreflects not only world-wide experience, but also the current trends inlow income countries generally and Sub-Saharan Africa specifically. Asmeasured by World Bank lending the vocational secondary school haslargely ceased to be a model for continued development.

6.82 The reasons have been discussed at length. Remaining is thecrucial question of the future of these institutions. The reviewsuggests one possibility: institutional reform to move the schoolstowards the operating characteristic of nonformal centers. This hasbeen possible in middle income countries. If Ministry of Educationstructures can adjust to the needs for flexible curricula and higherstaff salaries, and if employment demand exists, this strategy couldwork. Remaining would be questions about the comparativecost-effectiveness of the combined general education/vocationaltraining model, and the institutional difficulties of integratingeducation and training perspectives.

6.88 The alternative is to accept the lessons of experiencecompletely, and to move sharply away from secondary vocationaleducation. Some facilities could be converted to nonformal trainingcenters; others could be recast as general secondary institutions.

6.84 This alternative leaves unanswered the question of howsecondary education can do a better job, at low cost, in preparingstudents for continued training - either through nonformal centers oron the job. Clearly, such a policy shift would create both the needand the opportunity for curriculum reform and quality improvement.Indeed, it many in some cases be useful to consider means for qualityimprovement in secondary education together with investment strategiesfor vocational education and training.

6.85 New approaches to technological education are emerging in thedeveloped world, with some adaptation for developing nations. Byadvancing new concepts and curriculum structures for science andmathematics, these curricula seek to increase the relevance of

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traditional subjects to modern technological developments. Otherapproaches include craft, design and technology curricula with similarintentions.

6.86 These curricula should be given attention regardless ofchoices made about the future of vocational high schools. In thosecases, however, where Ministries of Education may move out of thevocational training role, these could provide the core of programs tostrengthen secondary education in important ways.

Sub-Regional Cooperation

6.87 Developing a shared resource base for education developmentin small countries makes good financial sense, and irdeed has beenoften proposed and occasionally attempted. Such efforts are beset withpolitical and coordination problems. Nevertheless, to see Frenchlanguage curricula for training diesel mechanics in West Africadeveloped independently in several small countries is to forcereconsideration of the possibility.

6.88 The review suggests that professional support institutionsthat integrate curriculum and testing development, and staff training,have made important contributions to quality and efficiency in largermiddle income countries. Such institutions are especially importantto vocational training because of the constant need to updatecurricula and materials, and staff capability. In the United States,highly decentralized vocational education and training systems drawheavily for curriculum and instructor training support on regional andnational institutions, some financed through state consortia, others bythe federal government.

6.89 The consortium model is of particular relevance to thedeveloping country situation. As applied, say, in Anglophone orFrancophone Africa, such a consortium would be based on financialcontributions from member governments. The institution would begoverned by a Board of national representatives. It would undertakeoccupational analysis, curriculum specification and test itemdevelopment for the core of courses common to member countries. Thisis the most costly and time consuming part of curriculum development.It results in a framework which can readily be adapted to localcircumstances (i.e., differing levels of skills at entry, differentcourse lengths). Where necessary, instructional materials (texts,handouts) can be produced locally at relatively low cost. Membercountry staff can be contracted by the regional institution to carryout part of the work, and could be seconded to the regional center forspecific tasks. This, essentially, is the successful Vocational andTechnical Education Consortium of the States (VTECS) in the UnitedStates.

6.90 The model could easily be extended to include trainertraining, research and evaluation and technical assistance services forinstitutl.onal development. Importantly, such an institution could

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provide the sustained support that institutional development requires,avoiding some of the problems inherent in project-bound technicalassistance.

6.91 Such an institution would be costly, and would requiresignificant external financing, probably over a ten to fifteen yearperiod. If, however, a significant commitment is to be made to thedevelopment of vocational training in Sub-Saharan Africa, these supportservices must be put in place. Sharing the resource across smallsystems makes economic sense. Whether it makes political sense, ofcourse, is a question to be addressed.

SUMMARY: IMPLICATIONS FOR THE WORLD BANK

6.92 The need for system rehabilitation and quality improvement inmiddle income countries, ard for sustained systems development in lowincome countries, indicate a continuing need for investment in VET.The policy and institutional develcpment content of these loans will bevery high.

6.93 The Bank faces a significant opportunity, and an equallysignificant challenge, in providing support for vocational educationand training over the balance of the century. The opportunity is tocapitalize on the generally successful pattern of training systemdevelopment in middle income countries, supporting increasedefficiency as well as the continuing evolution of quality and thecapability to assume new roles in technology transfer and productivityenhancement. The challenge is posed by the problems of developingcost-effective training systems in small low income countries, notablyin Sub-Saharan Africa.

6.94 Both the opportunity and the challenge will require strongpolicy and operational commitment from the Bank. The level ofanalytical and design sophiitication required in both circumstances isvery high. In the middle income countries, continued development ofpolicies, as well as planning and monitoring mechanisms that facilitateshort-term adjustments to labor market changes are both needed. Thecapability of the stronger systems to move effectively into technologydissemination and adaptation, or informal sector training, will need tobe strengthened. Financing polices and mechanisms will need countryspecific analysis for feasibility and equity implications.

6.95 In the low income countries, problems of institutional designand efficiency will predominate. Labor market monitoring and analyseswill be important. Implementation will be difficult in mostcircumstances, and recurrent cost financing will be required. Majorissues in system governance remain to be addressed in many countries,as do questions regarding the future of vocational secondary schools.The possibility, at least, of regional professional supportinstitutions should be explored.

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6.96 In the first instance, these problems must be addressedwithin the regional framework of the Bank. The challenge to the Africaregion differs substantially from that faced in the other regions.There the potential for inter-country cooperation in the face of commonproblems is very high, and a regional strategy and base of expertisefor vocational training development will be needed.

6.97 In the middle income countries, and hence for EMENA, Asia andLAC, current investments are making significant contributions tosystems improvement in many countries. Opportunities fcr furtherinvestments exist, however, and these will require a very high level ofpolicy and institutional development content. Broad investment inscience end technology development, already under way in few countries,should 1 expanded.

6.98 PPR should provide central policy and investment designsupport to the regions. Post-hoc evaluation of investmenteffectiveness will be of considerable importance. But continuinginformal coordination and support for inter-regional exchange ofexperience will be even more useful.

6.99 Establishing the analytical basis for policy dialogue andeffective investment design and supervision is likely to require ahigher level of Bank staff support than in the past. The decline inthe number of training professionals in the Bank over the past twoyears runs counter to this trend. The fragmentation of sectoralexpertise in the reorganized Bank may also weaken the capacity to mounteffective investment programs. Both trends are particularlytroublesome given continuing high demand for staff support of project-related training and free standing sectoral training investments.

6.100 The full potential for high quality lending in support ofvocational training is not likely to be reached with the present levelof operational and policy staffing. Thus the Bank faces some hardchoices. A strong policy and operational commitment could lead tosignificant advances in the low and middle income countries alike. Ifresources continue to be constrained, some priorities will have to beset within regions regarding VET. Given that the commitment to generaleducation must remain strong, and in some regions increase, thesepriorities will have to be set within vocational training, perhaps on acountry by country basis.

6.101 To be avoided is a weak response in the form of low levels ofanalysis and design, and inadequate supervision. Short-term resourceconstraints should not prevent the Bank from effective responses toboth the opportunity and the challenge.

104

Bibliography

General

Barker, H.W. (1988). General Operational Review of the Treatment ofManpower and Training Issues in Sector Work. Population and HumanResources Department, World Bank, mimeo.

Dougherty, C. (1988, forthcoming). Cost Effectiveness of NationalTraining Systems in Developing Countries: Issues and Experience.Population and Human Resources Department, World Bank.

Ducci, M.A. (1987) Equity and Productivity of Vocational Training:The Latin America Experience. Paper presented at the Conference onImproving Equity and Efficiency Through Job Training. Universityof California at Los Angeles, November 3-6, 1987.

Haddad, Wadi D. (1985). Teacher Trainina: A Review of World BankExperience. Discussion Paper No. EDT21. Education and TrainingDepartment, World Bank.

Haddad, Wadi D. with Conly, S. (198/). Diversified SecondaryCurriculum Projects: A Review of World Bank Experience. 1963-1979.Discussion paper No. EDT57. Education and Training Department,World Bank.

JimLnez, M. et. al. (1986) An Econowic Evaluation of a NationalTraining Sytem: Colombia's Servicio Nacional de Aprendizaje(SENA). Discussion Paper No. EDT24. Education and TrainingDepartment, World Bank.

Johanson, Richard et.al., (1986). Review of World Bank lendingOperations in Education and Training, Fiscal 1984-85. DiscussionPaper No. EDT28. Education and Training Department, World Bank.

Kim, Sookon (1987). In-service Training as an Instrument for theDevelopment of Human Resources in Korea. Seoul: Korea Chamber ofCommerce in Cooperation with OECD.

Kugler, B. and Reyes, A. (1978). "Financing of technical andVocational Training in Latin America, " in Seminar on the Financingof Education in Latin America. Inter-American Development Bank andthe Government of Mexico

Lee, C. (1985). Financing Technical Education ib LDCs: EconomicImplications ftom a Survey of Training Modes in the Republic ofKorea. Discussion Paper No. EDT6. Education and TrainingDepartment, World Bank.

Middleton, John and Schwartz, Antoine (July, 1986). Policy Study onVocational and Technical Education: Research Plan FY87-FY90.Education and Training Department, World Bank. Mimeo.

105

Psacharopoulos, George and Loxley, W. (1985). Diversified SecondaryEducation and Development; Evidnce From Colombia und Tanzania.Baltimore: Johns Hopkins University Press.

Psacharopoulos, George (1987). Time Trends of the Returns toEducation: Cross-National Evidence. Discussion Paper No. EDT94.Education and Training Department, World Bank.

Romain, R. (1985). Lending in Primary Education: Bank PerformanceReview, 1962-1983. Discussion Paper No. EDT20. Education andTraining Department, World Bank.

Schwartz, Antoine (1988, forthcoming). Profile of World BankFinanced Investments Investments in VET. Population and HumanResources Department, World Bank.

Whally, J. and Ziderman, A. (1988) 'Financing Training ThroughEarmarked Payroll Taxes." Population and Human ResourcesDe artment, World ank. Mimeo.

World Bank (1988a). Annual Operational Review 1987: Education andTraining. Population and Human Resources Department

World Bank (1988b). Program for Accelerated Educational Development,Population and Human Resources Department.

Sector Studies

Africa

Burundi. Developpement da l'education. Analyse et perspectives.UNESCO. December, 1974.

Burundi. Education: Priorities and Prospects. UNESCO. June, 1978.

Burindi Education Sector Memorandum. November 20, 1981.

Cameroon. Education Sector Memorandum. Report No. 2229-CM. December13, 1978

Cameroun. Etudes sur L'enseignement et al formation. UNESCO.November, 1985.

Chad Education Sector Memorandum. Draft, May, 1976.

Ethiopia Education Sector Survey. May 24, 1984

Ethiopia. Tertiary Education and National Development. UNESCO, April,1984.

Gabon. Developpment de L'education: Perspectives et Projects. UNESCO.June, 1973.

106

Gambia. Education Sector Brief, (1975?).

Ivory Coast Education Sector Memorandum. Report No. 1739-IVC.September 30, 1977.

Kenya. Education Sector Memorandum. June, 1980.

Kingdom of Swaziland. Educational Projects Proposed for ExternalFinancing. UNESCO. June, 1969.

Republic of Zaire. Education Sector Survey. UNESCO. April, 1976.

United Republic of Tanzania. Development of Technical/Vocational andAgricultural Education and Training. UNESCO. October, 1984.

Asia

Indonesia. 'The Education Sector" in 1979 Basic Economic Report onIndonesia. November, 1978.

Indonesia. Education Sector Strategy Paper. December 30, 1981.

Korea. Educational Services in a Rapidly Growing Economy. UNESCO.May, 1974.

Korea. Education Subsector Memorandum on Higher Technical Training.March 28, 1978

Korea. Sector Survey of Science Education. January 12, 1982.

Malaysia. Education in Malaysia. A Prospective Analysis. UNESCO.March, 1971

Malaysia. Proposals for Educational Development. UNESCO. April, 1975

Malaysia. The Reinforcement of Education and Manpower Development.UNESCO. November, 1977.

Malaysia. Education Sub-Sector Memorandum: Technical Education andVocational Training. June, 1980.

Malaysia. Science and Technology for Industrial Development inMalaysia. April 5, 1985.

EMENA

Algeria. Education Sector Memorandum. November 28, 1978.

Jordan. Education for Occupational Activities. UNESCO. November,1973.

Jordan. Education and Training for Mampower development. UNESCO.July, 1980.

107

Jordan. Education Special Studys Vocational/Professional Education andTraining. Mrach 23, 1984.

Morocco. Education au Marc. UNESCO. March, 1974.

Morocco. Education and Training Sector Survey. June 10, 1983.

Pakistan. Education Sector Strategy Review. February, 1988.

Tunisia. Education et formation: Problems et besoins. UNESCO.January, 1980.

Turkey. Industrial and Vocational Training Survey. July 27, 1983.

Turkey. Special Study on Institutional Arrangements and Training forTechnology Development. April 17, 1985.

Latin America/Caribbean

Barbados. Prospects for Educational Development. UNESCO. February,1978.

Brazil. Industrial technician Education and Training Sub-SectorMemorandum. September 28, 1982.

Dominican Republic. Le Educacion Como Contribucion al EquilibroSocioeconomico. UNESCO. December, 1973.

Ecuador. Educational Development: Problems and Priorities. UNESCO.May, 1986

El Salvador. Education Sector Memorandum (mimeo). April 13, 1976.

Mexico. Technical Education in Mexico: A Subsectoral Study ofTraining and Skill Development. March 14, 1986.

Paraguay. La Educacion y Su Apoyo al Desarollo Rural. UNESCO.November, 1979.

Uruguay. Education Subsector Memorandum. September 24, 1980.

ANNEXES

Annex I Methodology

Annex II Summary of Projects and Components in the Sample

Annex III Sector Work Analysis

Annex IV Pattern of Investment in Institution-Building

ANNEX I

METHODOLOGY

1.01 A representative sample of industry VET components wasselected for detailed analysis in response to the questionsraised in the introduction. Because Bank projects often incorporatecomponents designed to support a range of education sub-sectors(general primary education, secondary and non-formal VET, broadinstitutional development for the Ministry of Education, etc.), theproject component is thA most useful unit of analysis for a reviewrestricted to any given sub-sector.

1.02 These comrinents were analyzed using a questionnairedeveloped from a variable list based on a conceptual framework ofVET.* These variables, and the corresponding questions,cluster around four main themes:

a. Description of the overall project and its VETcomponents;

b. External Efficiency of component institutions;

C. Internal Efficiency of component institutions;

d. Financing of component institutions.

1.03 The questionnaire collated both quantitative and narrativedescriptive and evaluative data. These were entered into a data baseprogram for the personal eomputer that facilitates analysis acrossvariables, including the integration of quantitative and textualinformation. This makes it possible, for example, to combinestatistical data on costs and enrollments with narrative analysis ofproject implementation, and to structure the data along the comparativedimensions of the study: training mode, region, country income leveland time.

Characteristics of the Sample

1.04 The universe of components for the four modes studiedconsisted of 213 VET components in 149 projects in 71 countriesfinanced between FY63 and FY86. The total cost of these components(including contingencies) was $4929 million. One hundred andtwenty-one of rhese components (56% of the total), drawn from 76projects in 34 countries were selected for the sample. The total costof VET components in the sample was $2,923 million, or 592 of the totalcost for the universe of components.

*Drawn in part from Hunting, Zymelman and Godfrey. EvaluatingVocational Training Programs: A Practical Guide. World Bank, 1986.

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1.05 The following criteria were used in selection of the projectsfrom which VET components were drawn for the samplei

1. Projects with >15S Total Project Cost in VET: inorder to focus on investments primarily supporting VET.

2. Projects Initiated After 1975s in order toconcentrate on more recent experience.

3. Preference to Sequences of Projects in the SameCountry: in order to gain insight into cumulatingpatterns of investment.

4. Component Value >$1 millions in order to emphasizemore significant investments.

The second and fourth criteria were relaxed as needed to gain asufficient number of components. The aim was to provide a balancedcross-sectional view of components of different types, and therelaxation of criteria one and four resulted in the inclusion of a fewsmaller and earlier components.

1.06 Both completed and on-going projects were selected for thesample. In the latter case, however, only those projects coming last ina sequence of at least two projects were chosen.

1.07 The sample was stratified to permic comparison of invastmentsby mode, country income level, and region. As noted, the studyexamines industrial vocational and technical education and trainingdelivered through four institutional modes. These were defined as fol-lows:*

Secondary: Vocational education and training deliveredthrough senior secondary schools that grant degrees, andthat offer such programs as a principal purpose (and notthrough a "diversified" curriculum). These schools aregenerally operated by the Ministry of Education. Inprinciple, secondary VET provides access to higher-leveleducation and training.

* A separate comprehensive review of Bank education investments foundthat these categories, with the addition of University-level VETinvestments, general teacher training and diversified secondary schoolprojects, encompass the range of types of VET institutions supported bythe Bank (see Schwartz, 1988).

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Post-Secondary: VET programs that provideoccupation-oriented training and generally require asecondary-level degree for entrance. These courses areoperated either within existing universities or in centerssuch as polytechnics, designed specifically for technicalpurposes. Engineering schools made up a large proportion ofsuch schools in the sample.

Non-Formal: Institutions that offer a variety ofnon-degree programs, from short-term, three-monthcourses to training of two and three years, and at alllevels, from semi-skilled to management. The programsare designed to provide specific skills for employment.Some non-formal training institutions also providein-service training through evening and in-plantcourses, as well as training advisory services toenterprises. Non-Formal institutions are generallyadministered by agencies outside the formal educationstructure, such as the Ministries of Labor, Manpower, orSocial Affairs, technical ministries, employers, labor,or professional organizations.

Vocational Teacher Training: Programs designed toprepare vocational teachers and instructors. Theseinclude formal degree programs for all modes, as well ascertificate level programs for instructors in non-formalinstitutions. The former are generally housed inuniversit'es and colleges; the latter are generallyshorter in length, draw from workers with occupationalexperience, and are often accommodated on the samepremises as the VTC they are intended to serve.

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1.08 The second dimension of the sample was the income level of thecountry, using the annual per capita income categories of the 1986World Development Report: Low ($400 or less), tower-Middle($401-$1,600) and Upper-Middle ($1,601 or more). The third dimensionwas the World Bank regional structure of Africa, Asia, Europe/MiddleEast/North Africa (EMENA), and Latin America/Caribbean (LAC).

1.09 Characteristics of the sample, as stratified by these threedimensionst can be seen in Tables 1 and 2. Table 1 shoxws thedistribution of components by region and mode. The samples of EMENAand LAC components are proportionally representative of the universe,with sample and total component percentages of 37% and 39%, and 13% and15% respectively. African components account for 27% of the total, andthe sample 21%. In contrast, the Asia component sample wasdisproportionately large, with sample and total component percentagesof 28% and 19%. The relative undersampling of Africa components wasdue to the many small (less than $1.0 million) components; theoversampling in Asia to the large number of countries with sequences ofproject investments.

Table 1: Characterlstics of the Sawvle:Distribution of Components by Reglonand By Mode

(sample In parenthesis)

Couvonents By Mode

TeacherRegion Countries Projects Secondary Post-Secondary Nonformal Training I Totals

Africa 28 (13 ) 44 (16 ) 21 (12) 3( 1) 25 ( 8) 8(5) I 57 (26)

Asia 11 ( 5 ) 31 (22 ) 6( 7) 12 (10) 17 (12) 5( 5) 40 (34)

EMENA 16 ( 8 ) 47 (25 ) 14( 8) 20 (11) 33 (19) 16( 7 ) 83 (45)

LAC 16 ( 8 ) 27 (13 ) 5( 5) 4 ( 2 22 ( 8) 2(1) I 33 (16)

Total 71 (34 ) 149 (76 ) 46 (32) 39 (24) 97 (47 ) 31 (18) 213 (121)

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1.10 The sample is proportional to the total of components forupper-middle income countries. It over-represents lower-middle incomecountries (52% versus 42%), and is less than representative for lowincome countries (19% versus 25%). (See Table 2) These relativelyminor biases ag in reflect heavier emphasis on sequences of projectinvestments and on components valued at more than $1.0 million.

Table 2: Characteristics of the Sample:Distribution of Component by Income Leveland By Mode

(sample In parenthesis)

Compn ents By ModeIncome

TeacherLevel Countries Projects Secondary Post-Secondary Nonformal Training I Totals

low 24 (12 ) 41 (16 ) 14 ( 6 ) 4 ( 2) 26 ( 9 ) 10 ( 6 54 ( 23 )

Lower-Middle 29 (13 ) 62 (30 ) 20 (15 ) 13 (11) 44 (28 ) 13 ( 9 ) ' 90 ( 63 )

Uper-Milddle 18 ( 9 ) 46 (30 ) 12 (11 ) n (11) 27 (10 ) 8 ( 3 ) 69 ( 35 )

Total 71 (34 ) 149 (76 ) 46 (32 ) 39 (24) 97 (47 ) 31 (18 ) 213 (121)

1.11 As indicated above, the sample included 76 projects drawn froma total of 149. There were 17 "cluster" sequences, accounting forabout 78% of the sample. selected to study the evolution ofinvestments. These cluster projects occurred in Bangladesh, Pakistan,Sri Lanka, Cameroon, Ecuador, Egypt, Jordan, Indonesia, Ivory Coast,Morocco, Turkey, YAR, Algeria, Brazil, Korea, Malaysia, and Mexico.

The Data

1.12 Data were drawn primarily from Staff Appraisal Reports (SAR)and Project Completion Reports (PCR). These data are weak in manyrespects. SARs do not deal uniformly with project justification andplanning, the elements it the design of a component, or costs. PCRsrarely contain adequate information on project educational outcomessince they are written at the completion of the physical components ofa project. After preliminary analysis, 3 countries with successful VETinvestment programs were chosen for further research: Jordan, Brazil,and Korea. For these countries, collateral documents were examined,and interviews with projects officers were conducted to gain a morein-depth understanding of VET investments.

Annex II: Sunarv of Prolects and Comocnents In the SamnIa(Completed proJects)

AEBJflInputs

Expat LinkageCooairent Type of Institution Teachers IST Fellowships Other Strategy

Gambia I* NF Tech. Institute Yes Yes Yes Construction and equipment National Voc.FY78 Training Board;

Board of GovernorsC792GM representing

employers.

Seceodary technical Yes Yes Yes Construct 30 workshops NoneIn existing schools; convertfrom 4 to 5 years;curriculum reform

Guinea Is Secondary technical Yes Yes Yes Construction & equipment Students do OJTFY79 for 2 schools. Internships with

One school to be attached empIoyersC849GUI to an Instructor tralning

Institute; one to focus ontralning for pubiic sector

Instructor Training Yes Yes YesInstitute

Chad I1 Secmdary technical Yes Yes No Construct and equlp one TSS Advisory ConciIlFY71 and convert an existing one to be established

to NF training center;C251CO and transfer eqipment to

the TSS.

Ivory Coast I NF Tralning Center Yes Yes Yes Construct and equip one small Advisory BoardFY89 VTC pending needed additlonal representing

planning. employers, VTCL6671VC staff, Marpower

Board, MOE

PS Hlgter National No No No Construct and equip the None.Technical Institute Institute, uilch would offer

diplom and degree stuilesIn engineering andbusiness. Olplomacourses for two years.

Secondary tecwnical Yes Yes Yes Construct and equip 2 large None.uwper secondary technical

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Annex II: Sumarv of Prolect and Cawonmnts In the SameIa(Completed proJects)

SChoOIS.Inputs

Expat LinkageComponent Type of Institution Teachers IST Fellowships Other Strategy

Ivory Coast IIl Nf Vocational Yes Yes Yes Construction & equipment for Advisory Comm-FY80 Institutes fou vocational Institutes In hittees for

the we;tern reglon to traln each curriculumL17771VC highly skilled workers area comprised

and tectniclans. Full time of employers,pre-Mploymnt tralnIng for MOE staff andlower secondary graduates teaching staff.and upgrading courses foremPloyed workers.

Cameroon II* NF Adult Vocatlonal Yes Yes Yes Construction & equipment for Employers onFY72 Guidance & Tralning the Center, which would Center's Board

Center provide short training and of DirectorsC320Ca ugrading courses at

sel-skilled, skilled andtechnician levels. Ap.bilcinstitution jointly managedby the MOE with privatesector representatives. Asecondary technical schoolfinanced by the projectwould serve as the Center'sextension link In the North.

Secondary technicaI Yes Yes Yes Construction & equlpment for A Governing Boardtwo schools, one In northern Including employ-region targeted for Indust. ers to bedevelopment. One schooi to established.Include a sectlon to trainlower secondary workshopteachers. Both schools toprovide evening classesfor semi-skilled workers.

Cameroon 111* Secondary technIcal No No No Construction & equipment Governing BoardsFY76 for 2 lower secondary Including employ-

technical schools (1 trans- ers to beL1245CM ferred from the Second estabilshed.

Project.

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Annex I: Summarv of Prolect and Conoonents In the Sam le(MCompleted proJects)

IrputsExpat Linkage

Coqwioent Type of Institution Teachers IST Fellowships Other Strategy

Cameroon IV NF Adult Vocational Yes Yes Yes Couponent focused on Governing BoardsFY86 Guidance & Training buliding management and

Center planning capacity for theL2863CM national system, Improving

Ministry of Labor conpetence of Center staff,Directorate of and strengthening II nksManpower with employers.

Secondary technical Yes Yes Yes Rehabilitate and re-equip Governing Boards10 technical secondary

Educatlon Planning schools; staff training;Division and Directorate Improve management andof Technical and planning for VET in MOEVocational Ed., MOE

Gabon II* Secondary technical No No No Construction & equipment None.FY76 for one uppe and one

lower secondary school.L1084GA

Seneoa! .II* NF Industrial Yes Yes Yes Constructlon & equlpment The Center wouldFY79 Training Center for the center, which would train Industry

be merged abdinistratively trainers & conductC908SE with an existing Industrlal In-plant training.

training center operatingtuKder Independent management.

National Voca- Technical speclalists totional Training assist with legislatlon,Office organization & financing

for the natlonal office,which would be part ofthe Industrial trainingcenter.

TT Technical Yes Yes No Construction & equipment None.Teacher Training for the TT College, whichCollege would provide pedagogicai

training; practicaltraining would take placeat other Institutions.

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Amex iI: &Saarv of Proleect and Cmoaoxrnts In the Santle(Copleted projects)

InputsExpat Fellow- Linkage

Project Mode Type of Institution Teachers IST ships Other Strategy

Tanzania VI NF Vocational Training No UK UK Provision of additional NoneFY79 Centers equPlpent. Provision of 150

boarding places for studentsC861TA and staff at each of 2 VTCs.

S Technical Secondary No UK UK Provision of 160 hostel places NoneSchools to each of 4 existing TSSs.

TT Instructor Training No No No Construct, equip and furnish a NoneCenter new Instructor training

center. Provislon of boardingand staff houses. ITC wouldoffer both pre-service andIn-service ivgrading ofteachers.

Kenya V NF Inrdustrial Training No Yes No Construct & furnish the NoneFY81 Centers expansion of 2 ITCs.

Provislon of 270 boardingC1107KEN places and 6 staff houses. TA

provided by Danish goverruent.TA to assist DIT In plamingand coordinating of VET

Burundi il S Trade TrainIng No No No Construct, equip, furnish 1 NoneFY80 School TTS for construction trades.

This would replace and expandC976BUI an existing school and would

be the only secondary shoolin a densely populateddistrict of Bubanza.

S School for PtbiIc Yes No No Construct, furnish and equip a NoneWorks scr&o; for public works to

traing workers at the A2 & A3level. This would expand and4replace an existing schooi forpubilc works. Would providepre-service and In-servicetraining for the staff of the

w~.

-5-

Annex II: Smrv of Prolect and Coarxnents In the SamInlA

(Completed proJects)

Inputs

Expat Fellow- LIrikage:Ject Mode Type of Institution Teachers IST ships Other Strategy

Curundi li S Mechanics Yes No No Construct, equip, and furnish Department toDepartment a mechanics department In an have heavy

existing secondary school productionorientation sothat studentscouldparticipate Inrepalr, maint,& manufacturIngoperations forGovt & Industry

Zaire 1l S Technical Secondary Yes No No Rehabilltate, construct, Formal AdvisoryFY72 School furnish and equip classrooms, Committee

labs, workshops and adln representing00272ZR offices at 4 TSSs. These schools and

provide training for localtecuilclan trainees and enterprises toaccelerated voc training to be establishedadults. Management study.

TT Technical Teacher Yes No No Construct & some equip for Formal AdvisoryTralning College creation of a new TT College Committee to be

on tha grounds of a project established.TSS. This would enable TT Trainres gaintrainees to use workshops for teachingpractic-I Instruction. TTC experience atwould provide pre-service and project TSS.In-service training.Management study

Swaziland I* S Inrkistrial Yes No No Expanu, furnish and equip an AdvisoryFY75 Training Institute existing ITI. This would Committee to be

provIde 4-year tectilcal level established.C518SW programs as well as 3-year Some equipment

craft level programs to the NationalEmploymentService, shichprovides Inforto students

-6-

Amex II: Sumarv of Prolect and Coonets In the SamnIe(ComPleted projects)

InputsExpat Fellow- Linkage

Project Mode Type of Institution Teachers IST ships Other Strategy

Ethiopla VI TT Technical Teacher No No Yes Construct, equlp, furnish a NoneFY85 Training College row productlve TTC to training

teachers In practical subjectsC1520ET for secondary level. Would

provide pre-service andIn-service tralning toexisting teachers who werelnadeiuately trained. TA todevelop plan for higgereducation.

-7-

Anex II: Smarv of Prolect and Comownts In the Sample(Completed proJects)

ASAInputs

Expat LI nkageProject Mode Type of institution Teachers IST Fellowships Other Strategy

ndonesia 1* S Technical Training No Yes Yes Constructlon & equipment for National &FY71 Centers (TTCs) 5 TTCs, each serving 15 Local

vocational senior secondary AdvisoryC2191ND schools as workshop & lab Coimittees

facillties. TTCs provided of school16 hours/week of practical adeinistratorssubjects for each student. & employers305 Instructors to be tralnedfor the TTCs. 12.5 WY of TAIn advisory capacity forcurriculL & materialsdeveloPment.

ndonesia IV* S Technical Training No Yes Yes Construction & equlpment National &FY76 Centers (TTCs) for 4 additional TTCs. Local

Use curricula & materials Advisoryfrom first project. TA Committees

L12371ND for curriculum and staff of school

development. administrators& employers

NF Vocational Training No No Yes Constructlon & equilwent NoneCenters for 17 vocational training

centers (VTC) added to

existing system. Instruc-tors to be trained Inexistin,g centers; ILOmodular curriculum;mobile training units;TA for curricuilun and

staff development.

TT Secondary Techical Yes Yes Yes Construction & equipment Linked throughTeacher Training for two faculties for plamning to(for TTCs) technical teaCher tralning TTC expanslon

at existing TT Institutions.Teacher trainers recelve9 onths IST with TA; 43fellowships abroad

Aninex I: Swmary of Prolect and Comxxnents In the Sav I e(Completed proJects)

InputsExpat LInkage

Project Mode Type of Institution Teachers IST Fellowships Other Strategy

IndonesIa VII PS Polytechnic As Yes Yes Constructlon & equipment National andPolytechnic* Trainers for 6 polytechnic Institutes local advisory

FY79 of located on the capuses of comitteesFaculty existing universltles. TA

L869IND & fellowships to trainfaculty; part-timeInstructors fromenterprIses

Indonesia PS PolytechnIc As Yes Yes Massive expansion of the National andSecond Trainers polytechnic system, with local advisoryPolytechnic of cIviI works and equpiment committeesFY84 Faculty for the extension of 7

existing Institutions andL2290 IND creation of 11 new ones.

TA and fellowships forfaculty development.

TT Polytechnic As Yes Yes Expanslon of the PEDC begzEducatlon Trainers under prior project asDevelopment of a national resource forCenter Faculty curriculum development &

faculty training

IndonesIa NF National Ministry Trainers Yes Yes ClviI works, equipment, Close coopera-Pubilic Works of Pubilc Works of Trainers technical assistance and tion withMarpower Training Center recurrent costs to strengthen private con-Development the training capacity struction firms

FY83 Regioral WW of the WW. Planning, to design andTraining Centers management, course provide training

development and delivery, on a cost-L2258i1ND and monitoring to be recovery basis.

Improved. Decentralizationto 6 regional training oenters.

4-9

AnneX I: I %marv of Prolect and Conants In the Sample(*Completed projects)

Inputs

Expat LinkageProject Mode Type of Institution Teachers IST Fellowships Other Strategy

Indonesia NF Ministry of Labor Trainers Yes Yes Technical assistance (44X), FinancialMargxmer Marvower Planning of Trainers equipment (21X). recurrent/ support toDevelopment & National/Regional other costs (28X). civil provideFY86 Tralning Councils works (75). Heavy emphasis permanent

on ratlonalizing and staff forL27051ND Vocational strenthening the nonformal National

Training Centers training system. ObJectives Traininginclude better marpaer Council;

Inukstr lal and labor market analysis; JointTraining Development siwport for greater gov't/industryLhn Its Industry provision of vocational

training; strengthened trainingMobile Training llrkages; staff schemeLinits development; development

and Implementatlon of

NatIonal ISkils Standardsand Testing System.

TT NF Teacher Tralners Yes Yes Building modifications,Training Centers of Trainers equipment & TA for

existing NF TT Centers.

Financing for recurrentcosts of PT Instructorsrecruited from Industry.

Korea First S Secondary No No Yes Civil works and equlpment Local school/Educatlon Technical Schools to replace 3 and expand employerProject 6 secondary vocational linkagesFY69 schools. TA for currl-

culum and equipment

sPecificatIons. FocusC151KO on quality In first

stage of longer termprogram.

PS Junlor Colleges No No Yes Civil works and equipment Local school/

for extensions to four employerhiwer technical schools. lirkagesThese to be reorganizedfrom grades 10-14 togrades 12-14 nationally.

-10-

Anex Il: Sumrv of Proiect and Comonents In the Samnle(Completed proJects)

IrputsExpat LInkage

Project Mode Type of Institution Teachers IST Fellowships Other Strategy

Korea S Secondary No Yes Yes Clvil works & equipment to Local sdhool/Educatlon II* Technical Schools vgrade and extend 19 employerFY73 secondary technicai schools, lInkages

which would also provideL906K0 short-term evening In-service

Lptading courses. Schoolsselected based on presentand proJected localIndustrial development,quality of existing linkswith enterprises, andrecent employment record ofgraduates. Curricula mademore practical by adding1-3 months of OJT.

PS Junlor Colleges No Yes Yes Clvil works & equipment for Local school/UPgrading of one additional employerJunilor college linkages

Korea S Technical No Yes No Civil works & equipment for Local school/Educatlon III' Secondary School one additional large employerFY75 tecimical secondary school, llnkages

a 'flagship' nationalL10961(0 boarding Institution.

HF Vocational Tralners Yes No Clvil works, furnishings Local VTI/Training of Trainers & equipment for 7 VTls. employerInstitutes These expanded a national linkages

network begun with aprior AQB loan. Bi-lateraltechnical assistance forcurriculu and pedagaogy.Instructors trainedIn a large existing VTI.

KoreaEducation IV* NF Vocational No No No Civil works, furnishing & Local VTI/

FY77 Trainrig equipment for 8 additional employerInstitutes VTis. linkages

L1475KO

-11-

Annex 11: W_arv of Prolect and Comwonents In the Samle(ompleted projects)

IrputsExPat Linkage

Project Mode Type of Institution Teachers IST Fellowships Other Strategy

Korea TT Central No No Yes Equipment and technilcalEducation IV Vocational assistance (l8RD, LNDP(contirued) Tralning & bilateral) to expand

Institute and Improve tralningof VTI Instructors.TA to Vocational TrainingBureau to strengthenmageent & m4)ervislon.

Korea Sector PS Junior CoIleges No Yes Yes Suport for a broad program Local school/Program, Higher to Improve quality and em ployerTechnical flexibility of technical linkagesEducation' educatior, In junlor colleges

FY80 as part of a comrehensiveeffort at post-secondary &

.18OOKO tniversity levels. Establish-ent of accreditation system;Lpgading of equipmnt base tomet changing tectwoiogy; facultywtading; incentives for bothstLdents & faculty.

Malaysia S Technical No Yes No Civil works & equipment for NoneEducatlon I* Secondary Schools 5 new and 1 extended technical

FY69 and 6 vocational secondaryVocational schools.

L599MA Secondary Schools

Malaysia S Techdlcal No Yes No Constructlon,furniture NoneEducation Ii* Secondary Schools and equipment for oneFY72 technical and seven vocational

schools, provision of boardingL810MA Vocational facl I Ities and staff housing

Secondary Schools for two-thirds of the studentsand staff.

-12-

Annex II: &imrv of Proiaot and cumn.nts In t(MCompleted proJects)

IrputsExpat LInk%,3

Project Mode Type of Institution Teachers IST Fellowshlns Other Strategy

Malaysia PS Polytechnic No Yes Yes Clvil works, furnishing InformalEducation III' and equipment for the links wlth

FY74 first natlonal pubilc sectorpolytechnic employers

L974MA

Malaysia NF InKkstrial No Yes Yes Clvil works, furnishing NationalEducation IV' Training & equipment for 3 new Council of

FY77 institutes and extenslons to the 2 Indistrialexisting ITIs. Tralning

L1329MA

Malaysla PS Polytechnic No Yes Yes Civil works, furnishing & InformalEducation VI equlpment for 5 new links with

FY82 polytechnics. Location pbliic sectorIn less developed states. employers

L2145MA Tralning of faculty abroadunder fellowship.

NF Industrial No Yes Yes Civil works, furnishings NationalTraining technical assistance Council ofInstitutes and equipment for 3 new Industrial

ITIs. Expand role of TrainingITis to provide traininsgservices to Industry.Upgrade curricula and staff;strengthen management;studies on Incentivesfor Increased privatesector participation.

Malaysia PS Polytechnics Tralners Yes Yes Civil works, furnishing,Education Vii of Faculty technical assistance &

FY86 equipment for threeadditlonal polytechnics

L2601MA TA for the Improvement ofmarpower planning inselected agencies.

NF Indstrial Trainers Yes Yes Clvil works, furnishing, NationalTraining of Faculty equipment and TA for 2 Council ofInstitutes additional ITIs. Expand Industrial

private sector role In Trainingtralning; Improvemanagement

-13-

Annex II: S&inarv of Prolect and Coioonents In the Samle(*Completed projects)

InputExpat LInkage

Project Mode Type of Institution Teacher IST Fellowships Other Strategy

Banrgadesh 1* PS Technical Tralning No No No Constr'jction and equipment r, eFY73 Institutions (TTIs) for the expansion of 5 Mlls;

and equipment for eight TTIls.C407BA No provisions were made under

the proJect for curriculumImprovement. The program forsupplying expatriate teacherand overseas tralning for localteacher tralner. was financedunder Credit 49-PAK and hadbeen cowpleted before thisproject was designed.

Bangladesh 1I1* NF Technical Training As Yes Yes Clvil works, equipment for 5 NationalFY79 Centers (TTCs) TraIners new TTCs and equIpment for 2 Coumcil for

for Faculty existing TTCs to provide non- SkillsC9128A formal skill training to Development

secondary sehoc dropouts & & Trainingunemployed youth. 15 man- (representativesyears of TA and 14 man-years from Industryof fellowships for staff and Tradestaff development. Training Union).based on occuPational analysisand flexibility ensured throughuse of short self-containedtraining modules.

In-Plant As Yes Yes Experts,fellowshlps,stipends, NatlonaiTraining Trainers consumable materials and Couiclt for

for Trainers staff training to upgrade Skillsseml-skilled/skilled workers. DevelopmentIn-P!ant training scheme to Trainingprovide a comprshenslve range (representat iv:of services to state corpora- from Industrytions and training program to and TradeImprove efficlency,quality Union)and maintenance techniques.8 mn-years of sec,alistservies and 28 ran-years offellowships for theorganization of In-PlantTraining.

-14-

Annex II: umary of Prolect and Comcnnt :n the Sa m la("Completed Drojects)

IrnutsExpat Linkage

Project Mode Type of Institution Teachers IST Fellowships Other Strategy

Bangladesh Vill PS Polytechnics No Yes Yes Physical rehabilitation ProgramFY84 of acadeuic.workshop Inspection

facilltles and student Wing1490BA hostels. Equipment

modernization In civil,mechanical,electi-Ical,and Power engineeringfields. Practicalexperlence attachmentsfor students.TA and fellow-shIps to support staffdevelopment program.

Engineering No Yes Yes Renovation of existing Prc-jramCollege facilities. Practical Inspection

experIence attachments Wingfor students.

TT Teacher Yes Yes Yes Construction,furnitureTraining for existing TT

Income generating fields. TAand fellowships for faLiw tydevelopment.

Sri Lanka I NF Techaical Yes Yes Yes Equipment,tool3 ,tralning NatlonalFY81 Training materials and TA to Increase Apprenticeship

Institutes suPPly of construction BoaraC1130CE workers and Improve techtical

management expertise. On-sitetralning,trade testing andregistratlon to bulId upquality and career patternnow lacking. Course curriculadeveloped from job analysesto prowide effective trainingfor the Industry.

Sri Lanka 11 NF Technical Yes Yes Yes Civil works.furniture, NatlonalFY86 Training TA and recurrent exp. Apprenticeship

Institutes for skill training. 500 BoardC1698CE Instructors to receive

OJT. TA for curriculimdevelopment.

-15-

Anex II: Sumary of Pro elrt and Cononmnts In the Samntl(Completed proJects)

IrputsExpat Fellw- Linkage

Project Mode Type of Institution Teachers IST ships Other Strategy

Jordan i* PS Polytectvdc (& Trade No No Yes Construct & equip, PS coMp to Advisory BoardFY72 Training Center) provide tech trng, trng for to be

tech Instructs and lab techs. establishedC285JO Curriculi, Reform. Equipment

manufacturing wait attached.TA for staff developmentprovided by proj, UK andW.I/LO. Nat'l Voc CwmciI

to be established.

NF (Polytechnic) & Trade No Yes Yes Construct and equlp.of joint National VocTralning Center center. NW component to offer Coumcil to be

one and two yr. courses for establishedemployment. Curriculum reform.TA for staff developmentprovided by project, UKand UNDP/iLO

Jordan Hi* PS Ibrid Polytectmic No No Yes Construct, equip, and furnish AdvisoryFY75 polytechnic. TA to help Council to

develop curricula and syllabi. Include ptb andC534JO Courses offered Include 2 yr. private Indust

degree & short, Intensive the Natlonalspecialization courses VocatIonal Couc

and relevanttion Instituti

S Aqaba Trade No No Yes Construct, equip and furnish. EstablishTraining Complex Curricula developed by team of Lialson

experts. Preparation of a new Cmm Ittee,trade testing and chaired by thecertification system. courses Dlr of Voc Edoffered Include FT & PT of In the MOE &varying duration, Including repspre-apprentice baslc training of the Nationaland up-gading and re-training Voc CoLicil,

Complex Directorand Industryrepresentatives

-16-

Annex II: S&uIrv of Prolect and Coonents In the Sawle

(Completed proJects)

IrputsExpat Fellow- Linkage

oJect Mode Type of Institution Teachers IST ships Other Strategy

Jordan 1110 S Saahab Tralning No No Yes Construct, equip, furnish. NoneFY80 CowI ex Courses offered Include 3-yr.

FT and PT courses of varylngL1781JO duration and terminal. Output

expected to be employed inmanufacturing. Practicaltraining Is modular. TA to aid

curriculLm development

Jordan IV NF Trade Training No No No Construct, furnish, equip. TTC TTC wouldFY82 Center to offer courses to upgrade provide

worker Skills & to provide suvervIsory

L2068J0 apprenticeship training for training foryouth. indKstrIaI

personnel andassist firms toestabiishIn-plant

training

S General Vocational No Yes Yes Construct, equip, furnish 4 NoneSecondary GVSSs, 2 for boys, 2 for girls

of two-year, three-yearduratlon In Ind, ag, commerceand nursing. adult ed. TA toassist Lpgrading of teachingstaff

TT Teacher Tralning No No Yes Extension of existing Students willDepartment technical teacher tralning practice teach

Dept at Marka Polytechnic. In nearbycourses would train both vocationaltechticians and voc teachers. schoolscurriculum developed by localexperts. TA for instructors toupgrade skills

PS Tafiiah Polytechnic No No Yes Construct, equip, furnish. Nonecourses for two-yeartechnician traininog (grades13-14) and trade training(grades 10-11)

-17-

kmnex II: _mry of Prolart ard CgMnts In the Sawle(*Completed projects)

Iniputs

Expat Fel lw LlnkageProject Mode Type of Institution Teachers IST ships Other Strategy

Joroan IV PS Comum.nity College No No Yes Extension to convert 2 Advisoryexisting teacher training committee to beInstitutes Into comLnity establishedcolleges, equipment andfurniture. TT courses tocontimues, as well as techtralning programs & adult ed.curriculum developed. TA toassist In staff development

Jordan VII NF Trade Training Nio Yes Yes Construct, equip and furnish 4 Each TTC willFY86 Center now TTCs and extensions, have direct

equlpvent and furniture for 2 links withc2633Jo existing TTCs. Courses for Indlusty so can

tralning & upgrading of adjust to laborskilled & semi-skilled. marketshort-term & apprenticeship developmentstraining. TA for curricuwludevelopment

Turkey 11 NF Industrial No No No Improve SEGEM's In-service, TA to assistFY84 Training and OJT, lndustrial training SEGEM to meet

Developeent programs for mid level the requests I

L2536TU Center manpower and prof staff by recelves fromproviding TA to help (1) prep Industry forframework for national Ind trainingtralning system,(2) strengthen

existing program. Equip amaterials and AV center

PS Technician Tralning No No Yes Conversion S equipping uf 8 Advisory BoardCenters pilot technician training to be

centers to Ilpelent cirricula established forrefors. TA to assist ctrricula each TTC withdevelopment & strengthening of reps of localthe management system Industry, Dir

-18-

kmnex II: Starv of Prolect and Cnnoets In tha Samla(Completed projects)

InputsExpat Fellow- linkage

oJect Mode Type of Institution Teachers IST ships Other Strategy

Turkey III NF MOE No NA NA I prove the MOE Dept. thatFY87 oversees VET. Project to

provlde TA to developL2776TU Instrtetor training, skill

testing and certifIcatIon,entrepreneurship courses &evaluatlon programs

NF Apprenticeship No Yes No Training eculpment and minor Bullding theTraining Centers works for re-equipping the ATCs to be

existing Apprenticeship provided freeTraining Centers to be chosen of charge bydrrlng Implementation co panies In

! rKstr Iaareas

NF Pubiic Training Centers No Yes No Training equipment & wInor NoneCenters civil works for reqWippiIng

existing Pubilc TrainingCenters to be chosen duringIilementation

NF Adult Technical Training No Yes No Tralning equlpment & minor NoneTralning Centers clvil works for re-equipping

existing ATTCs to be chosendurlng Implementation

HF Women Training Centers No Yes No Tralning equipment & minor Noneworks for re-equippingexisting WTCs to be chosenduring Implementation

gypt il S Technician Training No No No Converslon of 4 existing Student OJTFY77 Schools 3-year technical trade schools Advisory

Into 5-yr (grades 10-14) Committee to ben1EGT technician training schoois by appointed

providing TA & new equipment.Assist gov't to Improveplaming & coordination of VET

PS Techniclan Training No No Yes Equlpment for 3 existing TTis AdvisoryInstitutes (grades 13-14) and equlpment Cmmittee to be

for 2 new TTis which govt was appointed InbuIlding -TTIs offer courses each schoolIn Ind and business. TA forctrricula development

-19-

Anmex II: Summarv of Prog lrt and Cawnents In the Sa I a(Copleted proJects)

IrputsExpat Fellow- Lirkage

oJect Mode Type of Institution Teachers IST ships Other Strategy

Egypt I NF Vocational Training No No Yes Re-equip 10 existing VTCs NoneCenters which provide courses In

IndustrIal trades. Constructand equip 20 new VTCs whichprovide courses in buildingtrades. TA to help MOE assess.arunoer needs In constructionsector.

TT Technical Teacher No No No Re-equlp practical courses at NoneTralning School the existing mS, for

teachers of secondary techschools. TA to Ixrovequality.

T'. Instructor Training No No No Furnish and re-equip one InstructorCenters existing ITC for voc training Training

centers In InKkstrial trades. Centers to beconstruct, furnish, equip 3 attached toexisting ITCs for voc training craft trainingcenters In building trades centers to

allowdemonstrationteaching andpracticeteacthlng

Egypt II S Technican Training No No Yes Equipment for the conversion AdvisoryFY79 Schools of 6 existing 3-yr.technical Committee to be

trade schools Into 5-yr formedC868EGT technician training schools

(grades 10-14). TTSs wouldalso provide tagrading andaccelerated training forworkers. TA for somecurriculum & staff -development

-20-

Annex I I : Summarv of Prno act ardG CGexMants In the Sam I a(Completed proJects)

IrputsExpat Fellow- Llnkage

ect Mode Type of Institution Teachers IST ships Other Strategy

pt II NF Vocational Training No No Yes Re-equlp 6 existing VTCs In NoneCenters Indust trades. Equipment and

furniture for 5 new VTCs InIrdust trades. Construct,fLrnish, equIp 20 new VTCs & 6mobile traing units Inbuilding trades. TA for curr.dev. Construct, equip bidgmanagement trainig program

NF Handlcraft Skills No No Yes Re-equip 4 existing handicraft NoneTraining Center skills training centers.

Re-equip one existinghandleraft Instructor trainingcenter. Substantial TA forlipleaentation, studies

PS Technician Training No No No Construct, furnish, equ!p a AdvisoryInstitutes new TTI (grades 13-14) to Camittee to be

replace existing one established

pt ilH* NF Vocational Tralning No Yes Yes Canstruct, furnish, equip 5 NoneFY81 Centers new VTCs & re-equIp 11

existing VTCs In IndustC1069EGT trades, mainly for the poor.

Equip 6 mw Dobile trainingunits for short-term andupgrading courses forwueployed. TA for Institutionbuilding In VTCs

NF Skills Training No No Yes Re-equlp 15 existing skills NoneCenters training centers, 5 existing

skills training centers forthe handicapped and 1 existingInstructor training center forwomen. these serve poorersegeents of urban population.

-21-

Arnx II: Srv of Prolect and Coino ts in the Sawle(ompleted projects)

InputsExpat Fel ow- LIrkage

ProJect Mode Type of Institution Teachers IST ships Other Strategy

Egypt IV NF Vocational Training No No Yes Construct, equip, furnish 22 NoneFY83 Centers new VTC In bidg trades. Equip

& furnish a aterials ctr atL2264EGT existing VTC. TA to prepare

training eodules for tradecourses. Construct/extend,equip, furnish 1 new and 5existing VTCs In Ind trades.TA for cwrr. & staff dev.

TT Instructor Traininwg No Yes Yes Ouality & Quantity IDproveenst NoneInstitute for existing ITI. Re-equip &

furnish classes for existingcourses. new equIpaent &furniture for 5 new courses.c*onstruct new dorm. TA toupdate Instructional mats. TAto lprove quallty of 3 inst.traing ctrs for VTCs

YAR I* NF Vocational Tralning Yes Yes Yes Construct, equip 2 VTCs. FunctlonalFY73 Center Courses provided to Include Advisory Boards

2-yr. full-time and nonformal to beC421YAR upgrading classes for workers. established for

'!rwctorate of Voc & Tech both VTCsEducation to be established

YAR 11' NF Vocational Training Yes No Yes Construct, eswip 2 VTCs to VocationalFY76 Centers provide 2-yr. baslc & skills Tralning Board

training programs & part-time to beC611YAR I4igrading for workers. Ed established to

materials production center to coordinate thebe established. Vocational skl 1 trainingTraining Board to be estab. to plans andcoordinate VET for all activitles ofmlnistries all ministries

dealing withvoc training.

-22-

Annex II: SuMarY Of PronJct and Crzmants In the SamIa(CoePleted projects)

lrPutsExpat Fellow- LI nkap

'roJect Made Type of Institution Teachers IST ships Other Strategy

YAR V NF District Trainlig Yes Yes No Construct, equlp, furnish 3 NoneFY83 Centers DTCs to provide literacy

cu wrses along with basicC1340YAR skills (ag, voc, home, faully)

to provide rural dwellers withsklils to maintain appllances,farm equip, etc.. DTCs wouldalso assist In tralningdistant rural ckellers

YAR Vil S Technical Secondary Yes No Yes Construct, equip a new TSS NoneFY86 School (grades 10-12). TA to assist

development of InstrnctlonalC1645YAR materIals. 2 new workshops,

extension of several othersand re-equlppgng an existingTSS

NF Vocational Training Yes No No Construct, equlp a new VTC to NoneCenter replace existing one, which

was overtaken by a TSS. TA andsoMe equlpment provided byGermans. construction of adorm

Natlonal Techtlcal NA NA NA TA for the establIslhent of a NoneTraining Board NTTB, which would prepare a(NTTB) national policy for training,

development of plans forpollcy Implementatlon,monitoring Implementation ofplans and preparation ofanmual reports on tralning

PS Polytechnic No Yes Yes Construct, equip, furnish None2-yr. Polytechnic. TA fordevelopment of currlwcluematerials. Instructor TrainingDept. to be a part of thePolytechnic, to traingtech/voc Instructors

-23-

km Iy I: Ssrv of Pron ht and Ctnwxwts In the Samle(Co pieted projects)

InputsExpat Fellom- Lincage

oJect Mode Type of Institutlon Teachers IST ships Other Strategy

Morocco IV S Technical Lycees Yes No No Construct, equlp 11 tectmical AdvisoryFY79 lycees offerlng 3-yr. Ind and Councils to be

comerce courses. boarding for establishedL1681JMR 6,000 to serve students from with reps of

Poorer homes. TA for course localspeclalists Industrial and

comercialInterest andgoverluent

PS Hlche Institutes Yes No No Construct, equlp 2 HigNr Advisoryof Technology Institutes of Tech to provide Counch for

2-yr comrses. boarding for each432. TA for course specialists Institution to

be establishedpart-time

faculty drawnfrom Industry

PS Post-Secondary Yes No No Construct, equlp a National NoneEngineering Schools Institute of Applied

Engineerlng to provide 4-yr.'Ingenleur d'acwlication'course and TA for coursespecial. extension ofMouhmmadia Engineering Collegeproviding 4-yr, and 5-yrcourse for IngenLeLr d'etat

TT TecviIcal Teacher Yes No No Construct, equip a Regional Adv!soryTraining College mC to train teachers for the council to be

expanding system of technical establiishedlycees

'orocco VI NF Vocational Training No Yes No Construct, equip. furnish 22 Each VTC willPIY85 Centers VTCs which offer modular be closely

training programs. TA to MPW, linked to aL2479N0R MOP and the OFFICE (gov't Regional

agency concerned with VET) to Trainingcoordinate their activities Council which

provides advioeon programs,help placegrads, and

-24-

kVEx 11: SH rv of Project and Ccixnrnts In the Samle(Completed projects)

inputsExpat Fellow- Linkage

Project Mode Type of Institution Teachers IST shiPs Other Strategy

Morocco VI NF Mobile Training No No No Acquisition of 5 new mobile NoneUnits training units which are to

provide training in resoteareas not otherwlse served bytraining facilities, Inresponse to reCussts fromlocal officials

Morocco VI TT Instructor Tralning No No No Furnish, provide audlo-vistal NoreCenter equipment and library books

for the new ITC which isintended to provideInstructors for project VTCs.will also offer In-service andrefresher courses of varyingduration. TA for ITC todevelop management structure

Twlisla IV NF Vocational Training No No No Construct. furnish, equip 7 AdvIsoryFY81 Centers new VTCs. Boarding facillties CowwliIs to be

to allow enrollment of woomen created forL19SITUN and students from outlying each VTC

low-Income areas. construct,furnish. equiP 13 extenslonsto 13 existing VTCs

NF Apprentice Training No No No Construct, furnish, equip a AdvisoryCenter new ATC to provide PT training Coulcis to be

for acertif led employed establishedworkers as apprenticms Inspecific trades and to provideshort courses and seminars.100 boarding places.construct, furnish, equipextenslons to 2 ATCs

The OFFICE NA NA NA TA to assist the OFFICE In NAstrengthening Its role In theplamving, coordinatlon,management and operation ofvocational training and InImproving the effIclency ofIts training prograus

-25-

Mm IX I: .1m1irv of Prolent and Cc oiwnta In the sawIa(oCpleted proJects)

InputsExpat Fellow- LIrnkage

Project Mode Type of institution Teachers IST ships Other Strategy

Alperia I PS Algerian Petrole i Yes No No Construct a new Tecdniclan NoneFY73 institute Center at the API In Setif.

expand a Techtlclan Center atL913AL the API In Oran. Curricula

being prepared by the EDC InBoston

PS Institute of Mining Yes No No Supplementary ecuipment for Noneand Metallurgy the liW which Is being

constructed, furnished, &equipped by the USSR

Algeria II* PS Technologlcal Yes No Yes Construct, equlp, furnish a AdvisoryFY78 Institute new pilot Technological COc.M Ii

Institute which was planned by coeprising r:,L1209AL the Ed Developuent Center & a of the main

Consorttum of 11 American Socletesorgs. courses to train Natlonalesengineers and oid-level concerned-woutecinicians. ODrricula reform be resp forto be Instituted guldance on

ma2ror needscturloulLu devOJT and evalua-tlon systems

Algeria III S Technicasm Yes No Yes Construct, furnish, equip No formalFY77 academic and commiai relationshjp,

facilities for 15 new pilot but close linksL1378AL technlciws, the first of to be developed

network of 30. ost grads to through visitsenter labor force. TA to train of students fortechnicum directors & to study traininglocatlon plaming. Currlcula prupsesreform to be Instituted Industrial

techniclansserve as PTInstructs

22I NF Vocational Training Yes No Yes Construct, furnish, equip for None

Training Centers academic and couna I(CFP) facilltles 2 CFPs for the

training of skilled craftsmenfor InrKutrlal and bulidingtrades

-26-

knex l: Sur of Prolect and Coranta in the Samie(Copleted proJects)

inputsExpat Fel lw- Llnkage

Project Mode Type of Institution Teachers IST ships Other Strategy

Algeria IV' PS National Institute Yes No Yes Construct, furnish, equip the AdvisoryFY78 of Mechanical NIMET to train higher Council to be

Engineering (NIMET) techniclan. engineers to be establishedL1595AL trained at NIME. NIMET to

offer 2-yr. training forbac-level students. boardingfor 1,200 provided. NIMET toact as center of appliedresearch & re-tralning

TT Institute for Yes No Yes Construct, furnish, equip the Training visitsVocational Instructor IVIT which would be located In to locblTraining (IVIT) an area targeted by govt. Industry and

boarding provlded for most VTCstralnees. Successful trainees Advisorywould qualify as voc Tralning Council to beInstructors established

TT Technical Teacher Yes Yes Yes Conversion & expansion of the Close liaisonTralning College ENSEP by subdividing existing with economic(ENSEP) space and adding additlonal sectors -

workshop/classrooms. Goverruentassured thatexistingadvisorycouzcil wouldhave stronglocalrepresentation

Algeria V NF Maintenance Training Center Yes Yes No Construct, equip 3 MTCs and Consultative

FY80 hostel accomodat ions. TA for Commlttees madeexperts up of trade

L1803AL associationsand Industriesto be appointedto assist withctrriculunreform

NF Industrial Training Centers No Yes Yes Construct, equip 3 ITCs, to Consultativeprovide skilled and Cmittees madesemi-skilled training In a uP of tradevariety of courses. hostel assoclationsaccomodations provided by Govt and Industries

-27-

Armx II: Sir of Pro lt and C&Nts In the Sample('Coqleted oroJects)

IrnputsExpat Fellow- I rnkape

Project Mode Type of Institution Teachers IST ships Other Strategy

Algerla V TT Institute for Instructor Yes No Yes Construct, equip the NIMTI, NoneTraining for Malntenance which would train InstructorsTrades for the project MTCs. TA for

experts

TT National Institute for NA NA NA Construct, equlp the NIMTA, NoneMaintenance Trades which would be located cioseAdministration to NIMTi In a ooqpIex which

wculd aIso IncIude one MTC.NIMTA would have resp fordeveloping objectives,pIarr,Ing and evaluatIon of thenetwork of MTCs Inci curr.reform. TA for exPerts.

Pakistan V NF Vocational Training Yes Yes Yes Construct, and/or furnish and AdvisoryFY81 Centers equip 6 new VTCs and 31 comittees for

existing VTCs. Development of each VTC.C1109PAK Instructor Training program. In-plant

Courses In the training training basedcenters to be linked with In Provincialstructured In-plant tralning Labor Depts forfor apprentices. upgrading.

Natlonal Vocational Furnish and equlp the National IndustryTralning Management and 4 Provincial Training representativassystem Board Secretarlats. to be Included

Construct, furnish and equip on the Nationalthe Natlonal Training Training Baord.Development InstItute whichwould assist the NTB and PTBs.

Pakistan VI NF Vocational Tralning Yes Yes Yes Construct andJor furnish & Advisory BodlesFY88 Centers equlp 31 new VTCs (suburban & for each new

rLraI)& 20 existIng VTCs. VTC and women'sC1670PAK Expand Prov. Apprentice center.

Services to Include variety of In-plantIn-plant Training Development tralning to beServiLes. Construct, equip & provided forfurnish 5 pilot womens' trainlig Industry.centers. Suvport Inst. trng.

National Vocational Strengthen the National NATraining Management and Provincial Tralning

System Boards

-28-

Annex II: Suarv of Prolect and Ctorxnts In the Samle(*Completed projects)

LACInputs

Expat Fellow- LI nkageProject Mode Type of Institution Teachers IST shIps Other Strategy

El Salvador 1III NF Vocatlonal No Yes Yes Create autonomous training PlacementFY78 Training agency. Construct, furnish officers of

Centers and equip three VTCs, 10 VTCs to act asL1571ES mobile training units and an Industrial

adfln unit. Vius wild offer IlaIsonapprentice, tWading, and officers. Eachaccelerated training. VTC to have anIn-plant trng unit to be advisoryestablished In MOL. committee.

In-planttraining andupgradingcourses.

Dominican NF VocatIonal No Yes Yes TA to assist In development of ;n-plantRepublic 11 Training national voc tralning scheme. tralning.to beFY75 Cenetrs Construct, furnish and equip provided. PCR

two new VTC and extend an notes that theL1142D WI existing VTC. Equip 4 relationship

existing VTCs . VTCs would with employersoffer upgrading and Is good.accelerated traininrg. Equip 8mobile units for rural areas.

Barbados II NF Vocational No Yes Yes Construct, furnish and equilp 3 ApprenticeshipFY86 Tralning new VTCs and equip and furnish arrangement

Centers one existing center, targeted with localL26888AR at uzemployed youth and industry,

adults, apprenticeship skillstraining, 20X to be women. TA upgrading to befor Improving admin of Nati offered.Trng Ud and Instructorcapabilities.

PS Barbados CC No No Yes Construct, furnish and equlp Improve andtechniclan training facilities expand the

existingIndustrlaladvisorycomeittee.

-29-

Annex II: uimry of Pro l ard Cnrmnts In the Sami.coepleteu. proJec'.s)

I rutsExpat Fellow- Linkage

Project Mode Type of Institution Teachers IST ships Other Strategy

Brazil 1* PS Operational No Yes Yes Construct, equip 5 OECs and Advisory CoinsFY72 Engineerlng extend am existing. Each already In

Center would share admin services and existence forL755BRA faciIltles with the lndustrial the coleglos.

coleglo on same ca Wu. Govt. to appointplacementoffIcer on eachcampus toImprove links.PCR reportshigh demand forgrads.

S Upper Secondary No Yes No Extend and equlp 2 existing Fourth year ofVocational upper sec. schools, one In an OJT requiredSchool area In which Incustrial for unilor

growth was anticipated. techniciancertificate.

Brazil III* NF VocatIonal No Yes Yes Construct, furnish and equip EaploymentFY77 Tralning 12 VTCs and equip one existing offices to be

Centers center to provide apprentice, created.L1452BRA secondary school and adult Job Upgrading

entry courses durlng day and coursesupgrading courses In evening. offered.Trainees to Includesupervlsory, oid tech, skilledand ssal-skilled.

-30-

Amex II: StiMry of Proiect and Cnwients In th. SaxMle(Completed proJects)

IrnptsExpat Fellow- Linkape

Project Mode Type of Institution Teachers IST ships other Strategy

Brazil V S National N/A N/A N/A Project alis at Improving Employers toFY84 Training efficiency, not assist In

System expansion. Includes defining2368RA strengthening of existing training

training Inst., and of programsnational and some state through asystems throLGh lmprovements NationalIn management, curricula Technicalcontent, Instructor and staff Advisorytralning, facilities and Committee onequipiment. Tech Training

to be created.Local & statesector AdvisoryCommittees forTecticianTraining to becreated.

Paraguay II NF Vocational No Yes Yes Assist SNPP to est. a national StrengthenFY77 Tralning Infrastructure. Expand, atiIsory

Centers furnish and equip 2 VTC, services toL1252PA construct 4 VTCs and furnish enterprises and

and equlp 2 mobile tralning Introduceworkshops to give accelerated managementtraining for rural youth, training.In-plant & manage training. PlacementIncrease tralning service.capacity fourfold. In-plant

tralninrg to beoffered.

Uruguay I NF Vocational No Yes Yes TA to establish a Voc Training Board of Direc-78 Training CoLfcil to administer all NF tors to be

Centers urban and rural voc programs, established.L1594UJRU mainly job-specific training Advisory groups

for adults. Construct, for eachf urnish and equIp one VTC and Industry In6 mobile units. which training

was to beoffered wouldassist Board.

-31-

AIMx 11: S Uarv of Proleet and Cggnmnts In the Santle(*Caieted g,rojects)

irPutsExpat Fellow- LInkage

Project Mode Type of Institution Teachers IST ships Other Strategy

Mexico I* S Tecdnical Training No Yes No Strengthen CONALEP New adminFY82 Centers efficlency and effectiveness center would

through bringing all have jobL2042MEX suervisory directorates placement

to one central location service. PCR(with Instructor tralning says CONALEPunit). was able to

Construct, furnish, equip strengthenand/or remodel 99 TTCs to advisoryprovide upper sec tech committees.training. Info on grad

plaoement.

Mexico II S Technical Training No Yes No Construct, f'urnish and equip Ertance theFY86 Centers 97 TTCs, some to Include role of the

productlon units. TA to IndustrialL2559MEX strengthen efficiency of adivsory

central/local offices of committeesCONALEP to enable It to handlethe expanslon. Expansion ofinstructor training.

Ecuador is S Technical Secondary No Yes No Construct, furnlsh and equlp 4 None reportedFY69 Scodols TSSs (3 exterslon, 1 In SAR, but PCR

relocated). Proj desligned to noted that twoC124EC sLVport governrent's plan to of the 4

consolIdate voc ed Into 8 TSS schools had(Instead of existing 22). developed theirBoarding to be provided. relations with

private firms.

-32-

km I I1: ximarv of Proiect and Coomnents In the Sam Ia(*Completed projects)

IrputsExpat Fellow- Linkage

Project Mode Type of Institutlon Teachers IST shlps Other Strategy

Ecuador II* NF Vocatlonal No Yes No Construct, firnish and equlp 2 EstablishFY76 Tralning VTCs to provide accelerated placement

Centers training, apprenticeship and service forL2171EC upgradIng and job-specific trainees.

training for grads of Offersecondary tech schools. apprentice andTralning In rural areas Lvgradingprovided by 2 obile units, training. PCRoutside TA to strengthen notes thatSECAP. 'Involvement of

employers intrainingtitOou0 theIn-plantplarming schemeIs beingestablished asan ImportantSECAPstrategy."

Ecuador ill NF Vocational No Yes No Construct, fLrnish and eqUlp CoursesFY83 Training 10 VTCs, 3 to replace existing developed with

Centers centers. Furnish and equip 1 assistance ofL2171EC existing VTC. ProvIslon of 5 business and

new mobile units. TA for IndustrySECAP Institution building toImprove planning, org andmanagement capabilitIes.

TT Instructor No Yes Yes Construct, furnish and equipTraining and Instructor training centerCenter to suPPIy SECAP and other pub

training agencies. Pre-andIn-service training. Also toInclude Instructionalumterials production center.Both would be Included In newSECAP complex.

Amex III: Impact of Sector Analysis on Investments

Tlming InSector Project

Reglon/Country Analysis Seqfence Notes on Inact on Investments

&AaL

Korea Yes After first, Basis for three subsequJent Investments with significant Institution-fourth and bullding comonents. Focus on science & technology Infifth later analyses.

indonesia Yes Before first; The second study was the basis for Investments In polytechnics.after second The third addressed policy issues, Including free-standingand third trainig.

Malaysia Yes Before second; Development of Institutional plaming and management capacityafter third late In project sequence after problems encountered, based onand fourth mId-term sector work. Focus on science and tectnoiogy In later

analyses.

Bangladesh Yes After two institutIon-buIlding.

Srl Lanka No Free-standing training project

Mexico Yes After first Some analytical basis for Institution building In secondproject.

Brazil Yes After second Analysis led to significant Institutlon-buliding project.

Barbados Yes Before only Done very early. Project has strong Institution-bulIdingproject focus, but no direct relationship to sector work

Paraguay Yes Before only Project has Institution-buliding focus, but sector study gaveproJect little formal attentIon to VET.

Dominican Yes Before only Some Institution-bullding for national system.Repubilc project

Ecuador Yes Afte three Focus on Institutlon-builiding and labor market analysis.projects

El Salvador Yes Before only Basis for Investment In national system (project falls).

Uruguy Yes Aftx onIy Cursory treatment of policy and institutlonal Issues.

2

Timing InSector Project

Regior,/Cowtry Analysis Sequence Notes on lInact on Investment

Jordan Yes Before second, Institution-building for national system. Increasing policy andfourth and Institutional enmhasis. Focus on science and technology Infifth later analyses.

Turkey Yes Before first Institution-bullding for national system. Focus on science andand second technology in later analyses.

Morocco Yes Before first Institutlon building for national system In later analyses.and second

YAR No (Institution-buIlding In last project).

Egypt No (Some Institution-building In later projects).

Algeria Yes Before third Troubled sequence of Investments. institution-buildingand fifth In last project. Sector work relatively weak on policy and

Institutional Issues.

Tunisla Yes Before only Institutlon building for national system.

Pakistan Yes Before first; Institution building for national system related to very earlyHitmr last sector work. Later SW emphasizes need for use of short-term

labor market information.Africa

Ivory Coast Yes Between first Institutlon-building for vocational training centers.and last

Cameroon Yes Between second Institution-building for national system.and last

Kerya Yes Before last Institution-building for technical education In MOE; sectorof Indirect relevance.

Tanzania Yes Before last Equity strategy for rural development, little VET policycontent (but other donors active In sector analysis).

Guinea Yes Before only Llttle VET policy content.

Senegal Yes Before only Institution-bullding for national system.

3

Timing InSector ProJect

RegiorVcouitry Analysis Sequence Notes on Impact on Irwestnent

Afriaa (continued)

Gambia Yes Before only Little VET policy content

Gabon Yes Before only Little VET policy content.

Chad Yes Aftt only Some VET policy content.

Ethiopia Yes Before last Institutional development In Ministry of Education.SW augmented by project-financed studies.

Swaziland Yes Before only Six years prior to proJect, but attention to policy andInstitutional Issues.

Zaire Yes At±m only Focus on policy and Institutional Issues.

Burundl Yes Before and First studY focused on tralning content; later analysis gives moreAfe only attention to pollcy Issues.

Mnne IV Pattern of Ir.vK3tuent In Institutio-8uilIding

LK

FY68

69 Ecuador I

70

71

72 Brazil I

73

74

75 |olnican Repubilc II

76

77

78 I El SalvadDr I

79

s0

81

82

83 E li

84 Erl

85

se |arodD 11|

87

* Sone Instltutlon Building .Signiflcait Institution Building

o lIZ

2

AmImx IV Pattern of linvestment In institutlon-Bullding

FY68

69 Ivory Coast I Malaysia I

70

71 InrkomesIa 1

72 Cameroon II Chad I Zaire I Malaysla 11

73 Korea II BangIadesF. I

74 Malaysia iIISwaziland I

75

76 Caeoon iII Gdbon II C77 7i ai eV

78 Gatia I

79 lSmal Guinea I ndnesla |BaladeshTanzania VI

80 vor Burundl II or

81 K

82 Malaysia VI

83 IndonsaPubllC Works

84 I ndones Ia ladesh Vii IPolytechnlc ii

85 Ethlopla Vi

86 | C-awoon IV M alaysia Vll | ndXmesla |

MP1 Development|

Some Institution Building .Silnificant Institution Buildingo

3

Aiimux IV Pattern of Investment In Institutlon-DulIding

FY68

e9

70

72(

73 Algerla 1

75 Go

76 ! YAR ll| Algerla 11

77 Algeria III E 7)78 Algeria IV

79 Egypt II Moromco IV

80(ora11 tl V|

81 J| Egpt ll | iV

82 JranI

83 i

85

87

- Some Institutlon Building - SlgnifIcant Institution Building

o LI

PPR Working Paper Series

Title Author Date Contact

WPS7 Institutional Analysis of CreditCooperatives Avishay Braverman April 1988 C. Spooner

J. Luis Guasch 37570

WPS8 Prospects for Equitable Growth inRural Sub-Saharan Africa Steven Haggblade April 1988 C. Spooner

Peter B. Hazell 37570

WPS9 Can We Return to Rapid Growth? Andrea Boltho June 1988 J. Israel31285

WPS1O Optimal Export Taxes for Exportersof Perennial Crops Mudassar lmran June 1988 A. Kitson-Walters

Ron Duncan 33712

WPS11 The Selection and Use of Pesticidesin Bank Financed Public HealthProjects Bernhard Liese June 1988 C. Knorr

Norman Gratz 33611

WPS12 Teacher-NonTeacher Pay Differencesin Cote dlIvoire Andre Komenan June 1988 R. Vartanian

Christiaan Grootaert 34678

WPS13 Objectives and Methods of a WorldHealth Survey Trudy Harpham June 1988 A. Menciano

Ian Timaeus 33612

WPS14 The Optimal Currency Composition ofExternal Debt StiJn Claessens June 1988 S. Bertelsmeler

33768

WPS15 Stimulating Agricultural Growth andRural Development in Sub-SaharanAfrica Vijay S. Vyas June 1988 H. Vallanasco

Dennis Casley 37591

WPS16 Antidumping Laws and DevelopingCountries Patrick Messerlin June 1988 S. Torrijos

33709

WPS17 Economic Development and the DebtCrisis Stanley Fischer June 1988 C. Papik

33396

PPR Working Paper Series

Title Author Date Contact

WPS18 China's Vocational and TechnicalTraining Harold Noah June 1988 W. Ketema

John Middleton 33651

WPS19 Cote d'lvoire's Vocational and

Technical Education Christlaan Grootaert June 1988 R. Vartanian

34678

WPS20 Imports and Growth in Africa Ramon Lopez June 1988 61679Vinod Thomas

WPS21 Effects of European VERs on Japanese

Autos Jaime de Melo June 1988 S. FallonPatrick Messerlin 61680

WPS22 Methodological Problems in Cross-

Country Analyses of Economic Growth Jean-Paul Azam June 1988 E. ZamoraSylviane Guillaumont 33706

WPS23 Cost-Effective Integration ofImmunization and Basic Health Servicesin Developing Countries: The Problemof Joint Costs A. Mead Over, Jr.

WPS24 World Bank Investments in VocationalEducation and Training John Middleton July 1988 W. Ketema

Terri Demsky 33651

WPS25 A Comparison of Alternative Training

Modes for Youth in Israel: Resultsfrom Longitudinal Data Adrian Ziderman

WPS26 Changing Patterns in Vocational

Education John Middleton July 1988 W. Ketema

33651

WPS27 Family Background and Student

Achievement Marlaine E. Lockheed July 1988 R. RinaldiBruce Fuller 33278Ronald Nyirongo

WPS28 Temporary Windfalls and Compensation

Arrangements Bela Balassa June 1988 N. Campbell

33769